The prices paid for three- and four-bedroom homes in Mayo rose at the end of last year - despite overall average property prices decreasing in the county.
Property prices in Mayo fell by €4,000 during the final quarter of 2020, according to the latest MyHome.ie Property Report in association with Davy.
The report for quarter four for 2020 shows that the median asking price for a property in the county is now €165,000. This represents the first fall in price in the county since quarter four 2018.
Despite this, asking prices for a three-bed semi-detached house in the county rose by €3,250 over the quarter, to €147,000. Prices for this house type are up by €2,000 compared to this time last year.
Meanwhile, the asking price for a four-bed semi-detached house in Mayo rose by €8,500 over the quarter to €178,500. This means prices in the segment were up €28,500 compared to this time last year.
The number of properties for sale in Mayo on MyHome.ie fell by 11 per cent in the last quarter and was down 25 per cent on this time last year. The average time for a property to go sale agreed in the county after being placed up for sale now stands at just over nine months.
The author of the report, Conall MacCoille, chief economist at Davy, said that house price increases were now likely in 2021.
He said: "This quarter’s MyHome report points to an acceleration in annual asking price inflation to 6%, the fastest pace in almost three years.
"This pressure has not yet turned up in transaction prices, although the Central Statistics Office (CSO ) Residential Property Price Index (RPPI ) rose by 0.5% in October, the sharpest monthly increase in over one year. It is probably only a matter of time before the official measure of house price inflation accelerates.
"As we head into 2021, homebuyers have saved additional funds to purchase homes, with sentiment helped by the likely recovery in the economy as vaccines are disbursed. Given that homebuilding will remain impaired, with banks seeking lending opportunities, too much cash is chasing too few homes – which can only push prices higher."
Angela Keegan, managing director of MyHome.ie, said: "The property market mirrors the overall economy, and we are in a much better place now than we may have expected to be earlier in the year when the virus emerged.
"Government Covid-19 supports, increased mortgage lending, and the concentration of job losses among mostly lower-paid workers, have ensured the property market has remained buoyant, while the ongoing issue of supply has exacerbated demand, leading to a rise in house price inflation."
Full details of the report can be viewed here: https://www.myhome.ie/reports.
