Third quarter increase for standard 3-bed semi in Kerry

FIGURES for the third quarter of this year show a rise of 2.63 per cent for the average three-bed semi-detached house in Kerry which now averages at €195,000, that’s according to figures released as part of a national survey conducted by the Real Estate Alliance (REA).

The survey also found that Killarney properties showed a larger jump with prices rising by €10,000 for the same quarter. The national price average for a three-bed semi has now reached €200,000 for the first time in some years - with prices naturally higher in the inner city areas of Cork, Galway and Dublin. The basic summation is that the Central Bank’s mortgage loan restrictions have only succeeded in keeping prices low momentarily, and with more people saving and meeting the necessary deposit rates - coupled with the slow rate in housing supply – prices may rise further.

“The early effects of the Central Bank restrictions had previously seen prices drop in the capital in the year to Q1 2016, but a combination of a longer time period to save and pressure in supply is manifesting itself in price growth,” said REA Chairman, Michael O’Connor.

“Our agents are also reporting that many first-time buyers seem to be holding fire in the hope of increased incentives in the upcoming budget. The Central Bank’s mortgage deposit rules are still being keenly felt in the commuter areas, with most rises occurring in towns where three-bed semis are available for under the deposit threshold of €220,000.”