Laois and Offaly average house prices to rise by 7% in 2018
The price of the average three-bed semi-detached house in Offaly rose by 20.7% to €175,000 in the last 12 months, according to a national survey carried out by Real Estate Alliance.
In 2017, property prices increased by 11.3% nationally and 13% in Dublin city and county.
In Laois, prices are still 10-15% below breakeven for new developments, and low supply led to 18% rises in 2017, while some counties are predicting that it could be five years before they see new developments.
After prices increased by 2.9% in Offaly between September and December 2017, local agents are predicting that property values will rise by 7% in the county in the coming year.
The outlook for the commuter areas surrounding the capital is continuing to improve after a cautious 2017, which saw prices rise by 10%.
Counties around Dublin are predicting a rise of 7.2% on average after two years which saw Kildare and Wicklow lag behind national rates of increase on 7%, but Meath outstrip the country on 14% due to the lower average house cost relevant to the Central Bank limit.
First-time buyer demand is rising but stock is the main issue, according to Aidan Heffernan of REA Heffernan in Tullamore.
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.
The average semi-detached house nationally now costs €225,806, the Q4 REA Average House Price Survey found – a rise of 1.8% on the Q3 figure of €221,861.
Overall, the average house price across the country rose by 11.3% over the past 12 months – compared to 7.7% nationally in 2016.
The survey also found that agents throughout the country expect prices to rise by 7.5% on average in the next 12 months.
“The heated market that we saw throughout much of 2017 has cooled somewhat and we are now in a period of more certainty,” said REA spokesperson Healy Hynes.
“A lack of supply is still the main driver of the market, with listings of second hand properties at a low level around the country.
“Anything that does go on sale is reaching sale agreed in a short period of time – five weeks on average and four weeks in Dublin city.
“However, this is not normal in a properly functioning market, where time periods of eight weeks to sale agreed are more common.”
The rate of increase in three-bed semi-detached home prices in Dublin slowed to 1.5% in the fourth quarter of the year as buyers look to new homes on the horizon.
The commuter counties also returned a restricted growth of 1.5% in Q4, and 10% overall for the year, following a relatively static 2016, with the average house now selling for €229,300.
The lowest increase in Q4 was reflected in the country’s cities outside of Dublin, where the grouping of Cork, Limerick, Waterford and Galway returned 1% growth, with average prices increasing by €2,375 to €238,625.
Towns throughout the rest of the country saw rises of 2.6% in the fourth quarter with the average three-bed semi now costing €146,633, up 12.3% from €130,600 in December 2016.
An increase in mortgage-approved buyers and the Help To Buy Scheme saw first-time buyers return to viewings in force over the past 12 months.
However, a shortage of suitable supply caused prices to appreciate, and REA agents in the capital are predicting that new homes will drive a bright outlook for the new year, freeing up some supply of second hand stock in the market.