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06 Oct 2022

Latest Laois property survey shows huge shortage and little price rise

Latest Laois property survey shows huge shortage and little price rise

Laois property prices have strayed from the national trend and remained unchanged in the last three months of 2021, according to a new survey.

Property prices in Laois have bucked the national trend, according to the latest MyHome.ie Property Report issued on Tuesday, January 4.  

The report for Q4 2021, in association with Davy, shows that the median (middle) asking price for a property in Laois is still €185,000, the same price sought last September.

See full table for all counties below story. 

However prices have increased by €5,000 compared with this time last year.

Asking prices for a 3-bed semi-detached house in Laois remained unchanged over the quarter at €175,000. This means that prices in the segment have risen by €5,275 compared to this time last year.

Meanwhile, the asking price for a 4-bed semi-detached house in Laois rose by €5,000 over the quarter to €215,000. This represents a year-on-year increase of €15,500 in the segment.

There were 113 properties for sale in Laois at the end of Q4 2021 – a decrease of 25.1% over the quarter.

The rapid average time for a property to go sale agreed in the county after being placed up for sale now stands at just two and a half months.

The national picture is grim for anyone hoping to buy a home in 2022. 

The author of the report is Conall MacCoille, Chief Economist at Davy.

“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% 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% rise in Residential Property Price Index (RPPI) inflation through 2021 and 4.5% in 2022. However, RPPI inflation rose by 13.5% in October and so the out-turn for last year is now likely to beat our forecast.”

“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% over and above existing levels.”

Angela Keegan is Managing Director of online property website MyHome.ie

“It is promising to see construction activity has increased for seven months in a row to November, but the stark reality is that we will unfortunately be living with a dysfunctional property market for some time to come.”

She said that supply was far too low to accommodate soaring demand for housing.

“We have never seen such a lack of stock on the MyHome.ie website and, given the significant increase in savings among prospective homebuyers, it is doubtful we will see much let-up in demand during 2022. We can only hope that restrictions are not reintroduced as the construction sector needs to be given every opportunity possible to continue to build properties.”

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