The price of the average second-hand three-bed semi in Galway city has increased to €345,000, up 2.4 per cent from €337,000 in the last three months, according to a national survey by Real Estate Alliance.
Prices in the county were unchanged this quarter at €230,000, while the average time taken to sell this quarter sits at four weeks in the city and six across the county, the Q1 REA Average House Price Index shows.
The survey shows that 60 per cent of purchasers in both the city and county were first-time buyers, and 20 per cent of purchasers in the city and 25 per cent across the county were from outside of the county.
A total of 30 per cent of sales in the city and 20 per cent in the county this quarter were attributed to landlords leaving the market.
Kevin Burke of REA McGreal Burke stated; “Supply remains limited, and this is underpinning the increases in property prices.
“Increased mortgage repayments are limiting the level of increase, and we expect the rate of growth to increase in line with the decreases in the ECB interest rates, if they occur.”
The actual selling price of a three-bed, semi-detached house across the country rose by 1.3 per cent in the first quarter to €308,235.
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.
Time taken to reach sale agreed nationally is steady at five weeks as historically low supply continues to drive sales - amidst a belief that interest rates may have peaked.
REA spokesperson, Barry McDonald said; “There continues to be strong demand throughout the country as buyers compete for the lowest supply of residential property in two decades – despite the high level of values and interest rates.
“On the positive side for potential homeowners, the Vacant Property Refurbishment Grant has finally kicked in, opening up a market for homes in need of improvement.
“These were the type of property previously really hard to sell with people afraid of refurbishment costs, limiting the market to builders and developers.
“If a home is declared vacant for two years or more, and it qualifies under the scheme, buyers know they can avail of a grant for refurbishment of up to €50,000 and up to €70,000 if there is a structural issue.”
Mortgage-approved first-time buyers are still the main market drivers, accounting for 59 per cent of sales nationally.
Major cities outside the capital experienced the highest rise in the Q1 survey – up by an average of over €5,000 in the last three months. The 1.8 per cent increase is equivalent to an average selling price of €328,750 – with the annual rate of increase at 6 per cent.
