Semi-detached homes prices are on the way back up
Semi-detached house prices have turned the corner and are on the way back up. According to the latest Permanent TSB house price index prices for three-bedroom semis actually increased by 0.2pc in March.
The turnaround, tentative though it may be, was forecast only last month in these columns when we predicted that this sector of the market would be the first to reach its floor on prices.
Average prices
At the end of the first quarter of this year, the average three-bedroom semi was priced at €296,000 -- down only 4.4pc on the level 12 months earlier.
Average prices also appear to be close to leveling off in Dublin as these fell by only 0.2pc in March after falling 1.1pc in February and 9.1pc over the 12 months. Average Dublin house prices had dipped to €390,274 during the month.
First-timers
The pace of price cuts in the Dublin commuter counties has also slowed, dropping by only 0.5pc in March compared to a fall of 1.0pc in February.
However, there appears to be no need for first time buyers to panic about an upturn in the market.
According to the PTSB, sellers are strongly targeting this buyer group as many of the price cuts are aimed at first timers. Consequently first time buyers enjoyed a sector with the sharpest price falls -- down 1.3pc in March and 3.6pc in the first quarter which is double the rate of fall seen by those trading up who could manage to negotiate average cuts of only 0.5pc in March and 1.6pc in the quarter.
As a result the average price for first time buyers dropped to only €251,282 at the end of March while those trading up are still paying more than €316,400 on average.
This seems to reflect the somewhat stronger urge among apartment owners to trade up to family houses including of course three bedroom semi-detached units.
- Donal Buckley
