Three-bed semis in county now making €225K

Rent pressure zones pushing landlords out of the market - REA survey

The price of the average second-hand three-bed semi in county Cavan has risen by €12,500 to €225,000 in the last three months, according to a national survey by Real Estate Alliance.

This represents a 5.9% rise in actual selling prices this quarter, and an annual increase of 20%, the REA Average House Price Index shows.

A third of all sales in the last quarter were due to landlords exiting the market, the survey found.

Prices in Cavan Town rose by 8.7% in the past three months, with demand being driven by a lack of supply, according to James Spring of REA Donohoe Spring.

“There is still high demand in Cavan Town. More new builds coming on stream, which should help to stabilise the market,” he said.

In Ballyconnell, average prices rose by 2.5% to €200,000, with homes reaching sale agreed in five weeks.

“Prices are still increasing with many exceeding the average. There is still a limited supply, and there are very few new builds in the Ballyconnell office area but those few that are available are significantly higher priced than second hand stock,” found Mr Spring.

The REA Average House Price Index concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.

The announcement of a nationwide rent pressure zone, meanwhile, has triggered a sharp increase in landlords exiting the housing market, the survey showed.

The Government’s announcement in June was followed by an immediate spike in landlord sales in many areas now included in the legislation.

REA agents in Carlow, Kerry and Waterford have reported that over 40% of their sales are attributable to landlords in the past three months – with that figure rising to 60% in Limerick city and 80% in Nenagh.

The REA survey also found that properties with a BER rating of A commanded an average 17% premium over C-rated stock – reflecting the rising attractiveness of retrofitted homes.

The actual selling price of a three-bed, semi-detached house across the country rose by 1.6% in the past three months to €353,458, a 9.1% overall rise annually.

The rate of increase in Dublin has more than halved in the past three months, with REA agents reporting a marked drop in viewings in the capital and homes now taking five weeks or more to reach sale agreed.

Selling prices in Ireland’s major cities outside Dublin rose by 2.2% to an average of €368,492 – an 8% annual increase.

Homes in the country’s large towns continue to show growth nationwide, 2.2% this quarter and 10.7% on last September to an average of €269,199.