COST OF LIVING FEAR SLOWS UP HOUSE BUYING
Strong demand now cooling off survey reveals
THE rate of house price inflation has halved in the past three months as buyers become more cautious amid rising living costs, a survey found yesterday.
The actual selling price of a threebedroom semi-detached property across the country rose by 1.4% to €290,630 – an annual increase of 10%, the latest Real Estate Alliance average house price index revealed.
It said this is a marked slowdown on the 2.9% quarterly increase recorded in the preceding three months, “signalling a cooling of the frenetic demand in the marketplace”.
The third quarter index also found A-rated homes are fetching 12% more than C-rated properties.
The gap rises to 16% in Dublin as running costs become more important to home-buyers.
The time taken to reach “sale agreed” rose from four weeks to five weeks as REA agents nationwide reported a “less frenzied” approach to viewing and buying.
While the actual average selling price of three-bedroom homes in the capital is about to breach the €500,000 mark, the 0.8% quarterly rise to €497,500 is half that experienced in the previous quarter.
REA spokesman Barry Mcdonald said: “We have seen a definite slowdown in demand levels and the urgency that we were seeing with buyers has reduced.
“The traditional summer lull returned for the first time in a few years and there was no sign of the market heating up again in September, which is good news for buyers.
“Interest rate rises and cost-of-living inflation are definitely affecting sentiment, with viewers patiently waiting for the right property.
“There is still a massive shortage of housing but Dublin agents REA Grimes are reporting an increase in supply and a wider choice of properties coming to market, leading to a longer sale time.
“The energy rating of a house is becoming a main talking point, with buyers increasingly taking the cost of heating or increasing the energy rating of older homes into account.”
Meanwhile, the latest data from property website Myhome.ie showed the rate of increase in asking prices for homes slowed in the third quarter of the year.
Report author and Davy chief economist Conall Maccoille said: “Asking prices are typically weak as the busy summer trading season peters out and fell in both Q3 2018 and Q3 2019.”