THE COST OF A THREE-BED SEMI JUMPS 20% IN YEAR WITH GOREY THE PRICIEST Transaction volume set to stay the same
THE PRICE of the average three-bed semi in Wexford rose by 20 per cent to €180,000 in the last 12 months, according to a national survey carried out by Real Estate Alliance.
However, average prices of threebed semis in Gorey, increasingly a commuter town serving Dublin, are the highest in the county at around €220,000.
Robert McCormack, from REA McCormack Corish, said there was a spurt in Wexford prices during the first four or five months of 2017, which had in the main driven the increase.
Mr McCormack said an average three-bed semi in Enniscorthy, while in New Ross, prices had risen to around €120,000, which reflected a yearon-year rise of 10 to 15 per cent. He said prices in Enniscorthy could rise substantially when the new section of the M11, bypassing the town, opens at the end this year.
Mr McCormack predicts that property values in the county will rise by six per cent this year.
The REA Average House Price Survey concentrates on the actual sale price of Ireland’s typical stock home, the three-bed semi, giving an up-todate picture of the property market in towns and cities countrywide.
‘We expect an increase in demand especially in the first two quarters from first-time buyers and investors as confidence grows,” said Mr McCormack.
‘We have also seen an increasing number of non-national buyers enter the market who are extremely well organised and always have their mortgage in place and deposits ready to go,’ he said.
Overall, the average house price across the country rose by 11.3 per cent over the past 12 months – compared to 7.7 per cent nationally in 2016.
‘ The heated market that we saw throughout much of 2017 has cooled somewhat and we are now in a period of more certainty,’ said REA spokesperson Healy Hynes.
‘A lack of supply is still the main driver of the market, with listings of second-hand properties at a low level around the country.
‘Anything that does go on sale is reaching sale agreed in a short period of time – five weeks on average and four weeks in Dublin city. However, this is not normal in a properly functioning market, where time periods of eight weeks to sale agreed are more common.’
The lowest increase in the fourth quarter of 2017 was reflected in the country’s cities outside of Dublin, where the grouping of Cork, Limerick, Waterford and Galway returned one per cent growth, with average prices increasing by €2,375 to €238,625.
Towns throughout the rest of the country saw rises of 2.6 per cent in the fourth quarter with the average three-bed semi now costing €146,633, up 12.3 per cent from €130,600 in December 2016.
An increase in mortgage-approved buyers and the Help To Buy Scheme saw first-time buyers return to viewings in force over the past 12 months. MICHAEL KINSELLA, from Gorey- and Carnew-based Kinsella Estates, said that taking the South East region in isolation, it is clear that the volume of transactions in counties Wexford and Wicklow last year is likely to be on par with 2016 figures (1,626 and 1,443 for each respective county).
‘ The value of properties have increased in both counties, with prices in Wexford rising at a rate higher than in many other parts of the country. By October, the average house price in Wicklow stood at €315,994 while the same in Wexford was €195,480,’ he said.
‘Mortgage lending continues to grow. However, supply remains the single greatest challenge to housing. As we enter 2018, there are just over 1,000 homes for sale across all of County Wexford, with barely 100 available to rent.
‘ These are unprecedentedly low figures and the market across County Wicklow is even more stretched, with 600 homes for sale and fewer than 85 available for rent, according to the main property portals Daft.ie and MyHome.ie.’
‘Clearly this is positive news for sellers of second-hand homes, where we have seen consistent demand for well-priced, well-presented family homes over the past two to three years. This looks set to continue and, indeed, get stronger as levels of available stock decrease,’ he said.
Looking ahead to 2018, Mr Kinsella said much of the optimism for firsttime buyers is focused on the new homes market.
‘With 10 active new housing developments currently selling across Wexford, many of these ready to launch their second phases, the north of the county is fast becoming a credible alternative for buyers priced out of the capital. Improved infrastructure and the M11 in particular has played a huge part in this.’
Across County Wicklow, there are 18 active new developments, with the majority of homes available in Rathdrum and Wicklow Town. Mr Kinsella said the Help-to-Buy (HTB) scheme is paramount to the success of new homes. It certainly assists first-time buyers in gathering their deposit – five per cent of the price of a new home, up to a maximum of €20,000 – and this has also given the residential building industry and its funders the confidence to increase house building.
‘ The flow of much-needed new homes is expected to improve further over the next twelve months as first-time buyers compromise commuting times for more affordable home,’ said Mr Kinsella.
‘On a nationwide basis, there are twice as many buy-to-let investors selling as buying.
This is further diminishing the rental stock.’
RIGHT: Michael Kinsella.