Selling price of three-bed semi-detached houses across the country rose by 2.7pc to €323,741Large towns have experienced previously-unseen average increases of €20,000 in three monthsTime taken to reach ‘sale agreed’ nationally has dropped to four weeks
Some regional towns have even seen prices of the average semi-detached home rise by as much as €20,000 during the third quarter of this year.
As buyers battle to secure affordable family homes, the major price hikes recorded by the REA Irish Independent Average House Price Index during this quarter have been outside of Dublin.
Frustration in the capital means the commuter market is now blazing a trail, with prices up by 2.9pc over the past three months to an average of €336,944.
Further afield, large towns such as Ennis, Tralee, Tullamore and Athlone have experienced previously-unseen average increases of €20,000 during that period of time.
The quarterly house price index concentrates on the sale price of Ireland’s typical stock home, the three-bed semi.
That means it offers an accurate picture of the second-hand property market in towns and cities countrywide.
The actual selling price of this type of house across the country rose by 2.7pc in the past three months to €323,741.
Time taken to reach sale agreed nationally has dropped to four weeks as low supply continues to drive sales.
Actual selling prices in Dublin city rose by 1.3pc in the last three months, and the average three-bed semi in the capital is now selling at €532,333 – an annual increase of 7.4pc.
The number of sales in the capital due to landlords leaving the market has risen six points to 24pc in the past year, the index revealed, but some areas are reporting a figure of over 50pc.
“Lack of stock in Dublin has accelerated bidding in the commuter belt, with a number of counties such as Meath, Louth, Carlow and Kildare experiencing their largest quarterly rises of recent times,” REA spokesperson Seamus Carthy said.
Anthony McGee of REA McGee said there has been a drought of properties on the market in Dublin over the summer – the lowest seen in years.
“One area where we are seeing improvement is in the turnaround time for probate.”
“Average selling time in the capital has fallen from five to four weeks, but in many cases it is as low as two.
“A lot of stock in some areas is ex-rental and landlords are keen to close as soon as the bidding hits their expected figures – so while properties are moving, we are not necessarily seeing the rises that you might expect.
“While there is activity on every property, it is not as intense as people may believe and we feel that moderate increases in supply would take the heat out of the current market.
“One area where we are seeing improvement is in the turnaround time for probate, which has previously been frustrating for potential buyers.”
Prices rose by €20,000 in Carlow town in the past three months, with local agent Harry Sothern describing the market as really hot, especially for three-bed semis, due to lack of stock.
In Louth, prices rose by €10,000 to an average of €282,500 – a quarterly increase of 3.7pc, with 80pc of purchasers from outside the county and 75pc first-time buyers.
Similar increases were seen in Meath, where 90pc of purchasers are now first- time buyers and a third of vendors are landlords.
Prices in the major cities outside the capital rose by an average of 2.25pc to €341,250 in the last three months, an annual rate of increase of 7.5pc.
Limerick city sales increased by an average of €10,000 for the second quarter in succession, an 11pc annual rise.
Prices in Galway city also increased by €10,000 (2.9pc) to an average of €360,000, with little or no new developments coming to the market, according to local agents REA McGreal Burke.
Cork (€385,000) and Waterford (€305,000) cities had quarterly rises of 1.3pc and 1.7pc respectively.
But it was homes in the country’s large towns that continued to show the biggest growth nationwide. Prices were up 10pc on last September and 3.6pc this quarter, to an average of €243,241.
Tralee has experienced the largest annual rise in the country, with three-bed semi prices rising by 22pc in the past 12 months, €20,000 in the past quarter and touching the €300,000 mark for the first time.
This €55,000 annual increase has been attributed to an acute lack of supply, with premiums being paid on each property, according to local agents REA Coyne and Culloty.
Agents in Ennis are also reporting a €20,000 quarterly rise – an annual increase of 17pc – with properties achieving up to 20pc above guide price due to a lack of both stock and new developments.
“The recent SCSI proposal for the establishment of a dedicated adjudication body or ‘rental court’ to deal with serious disputes between tenants and landlords as well as a thorough revision of the Residential Tenancies Act would be of great benefit to the property market as a whole,” Liam Browne of REA Paddy Browne said.
There is strong demand from Northern Ireland buyers for both permanent residences and holiday homes in Donegal, according to Roger McCarrick of REA McCarrick and Sons, Bundoran, where prices have increased by 2.7pc to €190,000 in the past quarter.
Today’s publication comes less than a week after the Central Statistics Office (CSO) confirmed an increase in property sales of 9.6pc to the year in July.
The figures from the CSO indicate demand is outstripping supply to such an extent that prices rose for the 11th month in a row.
The CSO also noted that prices of new homes have risen 124.3pc from their lowest point in 2013, while the price of second-hand homes has risen 146.4pc since their trough in 2012.
The Society of Chartered Surveyors Ireland (SCSI) recently found a widening affordability gap for buyers, including couples with two incomes.
Many are now finding themselves priced out of the market, even if they take advantage of state schemes.
Many experts still believe prices will rise further, amid ongoing pressures where demand is outstripping supply.
