Monday 19 February 2018

Revealed: The price of a three-bed semi-detached house is rising by €500 a week

Mark Keenan, residential property editor

The average three bed semi-detached house nationally has risen by 3.1pc to €221,843 since June, as the housing crisis continues to grow.

This means that the average price for a home is jumping by €500 every week.

Overall, the average house price across the country has risen by 11.2pc over the past 12 months.

The three-bed semis – which are the most common type of family home in Ireland – are now increasing in price at a rate of almost twice as fast as they were 12 months ago.

Meanwhile in Dublin the average price of a three-bed semi-detached home has jumped in value by €17,000 in the three months to the end of September, and now costs an average of €431,500.

The 4.1pc rise over the last quarter means that prices in the capital’s postcode areas have increased by 15.6pc over the past year, with properties selling in an average of four weeks after hitting the market, according to the third quarter REA Average House Price Survey.

“Supply is the main driver of these continuing price rises with our agents reporting that the volume of listings is down around the country,” said REA spokesperson Healy Hynes.

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And there is no sign of the housing problem abating with the REA saying that, based on supply figures it could be 2020 before we see any normalisation in the marketplace.

"Although planning permissions rose by 55pc year-on-year in Q2, the 3,630 houses approved will not be on the market for the next two years, and even then this year’s overall figure will be less than half is what is required on an annual basis," Mr Hynes said.

The commuter counties continued to rebound after a relatively static 2016 and saw an increase of 2.7pc in the last three months, with the average house in a commuter county now selling for €229,300.

The commuter flight has once again spread as far as Laois where REA Seamus Browne reports a €10,000 increase in average prices over the past three months as buyers leave Dublin and Kildare in the quest for suitable housing at the right price.

The slowest growth nationwide was registered in the main cities outside of Dublin, as while Galway at €255,000 (up 4.1pc) and Limerick at €190,000 (up 2.7pc) showed growth, Cork city prices remained static over the three-month period, and just 5.1pc up on the year.

The country’s smaller rural towns situated outside of Dublin, the commuter belt and the major cities out-performed the national index with prices rising by an average of 2.8pc over the quarter to €142,867.

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