Property prices in Mayo have bucked the national trend by remaining unchanged during the last year quarter, according to the latest MyHome.ie Property Report.
The report for Q4 2021, in association with Davy, shows that the median asking price for a property in the county is still €175,000. This means prices have increased by €10,000 compared with this time last year.
However, asking prices for a three-bed semi-detached house in the county rose by €1,250 over the quarter to €152,500. This means that prices in the segment have risen by €5,500 compared to this time last year.
Meanwhile, the asking price for a four-bed semi-detached house in Mayo fell by €5,000 over the quarter to €170,000. This represents a year-on-year increase of €8,500 in the segment.
There were 488 properties for sale in Mayo at the end of Q4 2021, a decrease of 8.2 per cent on quarter three. The average time for a property to go sale agreed in the county after being placed up for sale now stands at nearly four months.
The author of the report, Conall MacCoille, chief economist at Davy, said that the findings of the report painted a grim picture for prospective homebuyers.
He said: "The unwelcome message from this quarter’s MyHome report is that there is little sign of conditions easing. This quarter’s MyHome report shows annual asking price inflation accelerating to 9.7 per cent in Q4 2021. Prices also rose by an uncharacteristically sharp 1.2% in Q4 during the normally quiet winter months. This reflects the market grinding tighter, with the stock of homes listed for sale having fallen to a fresh historic low of just 11,300. In addition, Ireland’s labour market is performing exceptionally well, adding to housing demand.
"The shortage of stock for sale or rental is most acute outside the capital, Dublin, and is also evident in a marked decline in the average time to sale agreed to just three months nationally."
He said that the inflation forecast for 2021 and 2022 would likely now be beaten. "We had forecast an 11 per cent rise in Residential Property Price Index (RPPI ) inflation through 2021 and 4.5 per cent in 2022. However, RPPI inflation rose by 13.5 per cent in October and so the out-turn for last year is now likely to beat our forecast."
He added: "Our analysis shows that house prices are now seven times’ average incomes. Even still, Central Bank of Ireland and Economic and Social Research Institute (ESRI ) estimates suggest that the mortgage lending rules have stopped house prices rising by an additional 10-25 per cent over and above existing levels."
