Survey reveals house prices in Cork have remained static despite fears over impact of Covid on market

WHILE the COVID-19 pandemic has had an impact on the housing market in Cork County, a new report has revealed that impact has not been as serious as had at first been feared.

Issued on a quarterly basis the Real Estate Alliance (REA) house price survey focusses on the sales of a typical Irish stock home, the three bed-semi, giving a regular up-to-date picture of the second hand property market across the country.

According to the latest survey house prices in the county have remained static over the second quarter of this year, with the average prices as June drew to a close standing at €176,000 – the same as it was at the end of March.

While this figure was up by 1.1% compared to quarter two of 2019, that figure was significantly lower than the 4.5% increase recorded between Q1 of 2019 and the corresponding period this year.

While a clear indication that the market has slowed down, REA spokesman Michael O’Donoghue said they had found no evidence so far to suggest the market would be “severely affected” by COVID-19, adding “demand continues to be fairly strong.”

“We will have to wait until the end of

Q3 to get a clearer picture as to how the market is progressing allowing for the summer period,” said Mr O’Donoghue.

Sarah O’Keeffe of REA Charleville said that locally the price of an average semi-detached, three bedroomed house rose by 2.7% over the past 12-months to €154,000, with time to sell rising by one week to 11 weeks over Q2 of this year.

“Demand is strong for semi-detached units under €160,000 and the continued lack of supply will keep prices strong,” said Ms O’Keeffe.

Meanwhile, average house prices in Cork City also remained static over Q2 at €320,000, and remained unchanged from the same period in 2019.

Nationally, the REA survey found that, despite fears of a downturn in the market due to the lock-down, the price of a three-bed semi fell by just 0.15% over the past three-months to €234,667. This represented an annual fall of 0.56%.

REA spokesperson Barry McDonald said that while sales did show signs of slowing during lock-down, “they did happen and despite fears, very few fell through or had to be renegotiated.

“Changes in the world of work are having an immediate effect on the second-hand housing market with a nationwide trend emerging of buyers looking to move 15 minutes outside of their urban location where they can get more space for the same money,” said Mr McDonald.

He said that across the board REA members were now finding buyers were looking for three key things in a new home – more space, gardens and a guarantee of better broadband - where previously transport had been given the highest priority.

“While the current outlook is positive, and there seems to be a lot of pent-up demand, it may be Q3 before we see the effect of COVID-19 on the market and on the outcome of mortgage approvals granted before the lock-down,” he said.