Stock levels struggling to cope with soaring demand
CARLOW
AVERAGE PRICE: €220,000
Areas: Carlow town, Tullow, Hacketstown, Rathvilly, Bagenalstown
Change: s 6%
One Year Forecast: s 6%
Assessing Agent: REA Sothern
THE MARKET
Demand for property in Carlow is predicted to continue rising after a year of unexpected growth in both volume of sales and in the prices which have been achieved.
Despite projections of zero growth for 2020, prices rose by an average of 6pc and are expected to continue at this rate for the coming year.
Estate agent Harry Sothern of Sothern Real Estate Alliance was surprised by the turn of events in a market that defied predictions.
“All bets are off as the psychology around buying property has been turned on its head,” he says.
“The movement out of Dublin has become increasingly evident, with growing numbers of people happy to give up the daily trudge of the office commute for a better quality of life. Enquiries are also coming in from returning emigrants, particularly from the UK, Germany and France.
“There’s as much demand for detached country houses as there is for semis in town. Country homes used to be the difficult ones to sell, as couples thought they’d need two cars and would have to spend too much time driving in and out of town.
“Working from home has bucked that trend. It’s been a game-changer and even when offices open again, as they will, employees are unlikely to have to be there five days a week.”
While the four-bed semi in town remains the most popular property type, especially now when a home office is in such high demand, the Dolmen County is starting to attract a new wave of investors, particularly in Carlow town. They’re buying affordable, second-hand apartments near the IT campus where students look to rent each year.
“Developers are not building new apartments as the cost is not sustainable, but the existing blocks are looking refreshed, and renewed interest in those apartments is driving prices up again,” says Sothern.
“Originally sold during the Tiger era for over €200,000, they dropped to a quarter of their price, but now they’re bouncing back.” Higher rents are also driving buyer as more tenants choose to swap high-rental charges for mortgage repayments, which cost significantly less.
Not all homes saw price increases. Some types like the five-bed detached and the threebed terraces added no value at all through the last twelve months.
Either way, getting a foot on the property ladder will be a challenge for first-time buyers in 2021, he warns, with the lowest stock levels he has witnessed in over 40 years increasingly taking effect and squeezing options.