independent

Wednesday 24 October 2018

House prices on the rise but lack of supply is an issue

All the latest reports are in agreement: house prices in County Wexford are rising
All the latest reports are in agreement: house prices in County Wexford are rising

Esther Hayden

House prices in Wexford are on rise according to the three latest property price reports.

The Real Estate Alliance Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi. According to the report the price of the average three-bed semi in Co Wexford rose by 12.5 per cent to €180,000 in the last 12 months.

The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide to the close of last week.

According to Robert McCormack from REA McCormack Corish, stock is extremely low across County Wexford and there have been no price changes in the first three months of this year

The average semi-detached house nationally now costs €229,111, the first quarter of the REA Average House Price Survey has found - a rise of 1.5 per cent on the final quarter 2017 figure of €225,806.

A report from MyHome.ie shows how property prices in Wexford have risen by €10,000 in the last year. The report for the first quarter of this year shows that the median asking price for a property in the county now stands at €185,000.

While this remained unchanged from the two previous quarters, prices annually were up 5.7 per cent from €175,000 this time last year.

The lack of change in the asking price means the cost of a home in the county remains at its highest level in more than six years since it stood at €198,000 at the end of the fourth quarter of 2011.

The rise in prices has been reflected in the asking price of a 3-bed semi-detached home in the county. These were up 2.6 per cent in the first three months of the year, an increase of €4,000 to €159,000. This contributed to year-on-year growth of 6.7 per cent with prices for this house type also up €10,000 from a year ago when they stood at €149,000.

The asking price of a two bed apartment was €128500 which was a quarterly increase of 28.5 per cent and a yearly increase of 11.74 per cent.

It was a similar enough story in relation to the asking price of a 4-bed semi-detached home in the county. This was also up €4,000 in the quarter after a 2.3 per cent increase to €179,000.

This contributed to an annual increase of 7.2 per cent with prices now €12,000 ahead of where they were this time last year at €167,000. This has also left prices for a 4-bed semi in the county at its highest level in more than six years since it stood at €179,500 at the end of the fourth quarter of 2011.

The latest House Price Report from Daft.ie shows that prices in the first three months of 2018 in Wexford were seven per cent higher than a year previously. The average house price is now €200,000, 60 per cent above its lowest point.

The report shows that the average price of a one bed apartment in Wexford during the first quarter of this year was €72,000, a rise of 12.5 per cent. The average cost of a two bed terraced home in Wexford during the same period was €95,000, a rise of 8.7 per cent.

The average price of a three bed semi detached home was €133,000, an increase of 7.4 per cent while the average price of a four bed bungalow was €252,000, a rise of 5.9 per cent. The average price of a five bed detached home is €270,000, an increase of 0.8 per cent.

The average house price in Wexford during the first quarter of the year was €199,647 which is a quarter on quarter increase of 3.6 per cent compared to the final quarter of 2017 and a year on year change of 6.9 per cent.

There is a 59.8 per cent increase in the price of homes in Wexford since their lowest point in 2013.

The biggest problem according to all three reports is the lack of housing stock both in the county and nationwide.

The number of properties for sale in Co Wexford on MyHome.ie has fallen by 14 per cent in the last year as stock levels across the country remain an issue. The average time to go sale agreed on a property in the county now stands at just over five and a half months.

Conall MacCoille, Chief Economist at Davy, who wrote the report said while there has been some housing developments built it doesn't meet demand.

'Although moving in the right direction the current level of homebuilding - circa 12,000 per annum - remains well short of the natural demographic demand of at least 35,000 each year', he said.

According to Robert McCormack from REA McCormack Corish, stock is extremely low across County Wexford and the average semi-detached house nationally now costs €229,111, the first quarter of the REA Average House Price Survey has found - a rise of 1.5 per cent on the final quarter 2017 figure of €225,806.

Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said: 'The picture of the housing market in Ireland currently remains one of strong demand and very tight supply pushing up prices.

'During a five-year period when consumer prices did not change, housing prices rose by 50 per cent. This is an indication of how inadequate housing supply is.

'Planning permission was granted for a little over 5,000 apartments, nationwide, in 2017, and for 20,000 dwellings in total - less than half the likely demand. It is often said that the mantra in the housing market is 'location, location, location'. For housing policy in Ireland, it needs to be 'supply, supply, supply'.

Martin Clancy from Daft.ie said: 'Interest and activity amongst property hunters remains very high. At the moment, we are seeing on average over 1,000 property searches taking place every minute on Daft.ie.'

Angela Keegan, Managing Director of MyHome.ie said that while first time buyers would continue to be concerned at the rate of inflation, there were some positive trends in the new figures.

'Transactions levels are up 10 per cent in the first two months of the year and we would be predicting an 11 per cent increase on last year's figure of 54,000.'

Wexford People

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