House prices continue to rise over the past 12 months

Dublin prices are increasing by €17,000 in three months

House prices continue to rise over the past 12 months

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New figures show house prices across the country are continuing an upward trend.

The average three bed semi-detached house nationally has risen by 3.1% to €221,843 since June.

The REA Average House Price Survey has found the overall average house price across the country has risen by 11.2% over the past 12 months - just under twice the 6% increase registered to the full year to September 2016.

The average three-bed semi-detached home in Dublin city's postcode districts has jumped in value by €17,000 in the three months to the end of September.

This type of house now costs an average of €431,500.

The 4.1% rise over the last quarter means that prices in the capital have increased by 15.6% over the past year, with properties selling in an average of four weeks after hitting the market.

Source: REA

"Supply is the main driver of these continuing price rises with our agents reporting that the volume of listings is down around the country," said REA spokesperson Healy Hynes.

"In what is becoming a vicious circle, families looking to trade up are not seeing the larger homes becoming available while empty nesters looking to downsize do not have a ready supply of smaller homes emerging on the market.

"To complete the equation, first-time buyers are not seeing the three-bed semis coming through in sufficient numbers.

"Although planning permissions rose by 55% year-on-year in Q2, the 3,630 houses approved will not be on the market for the next two years, and even then this year's overall figure will be less than half is what is required on an annual basis.

"Looking at the supply figures, it could be 2020 before we see any normalisation in the marketplace." 

Outside Dublin

The commuter counties saw an increase of 2.7% this quarter, with the average house now selling for €229,300.

However, the influence of house pricing relative to the deposit threshold is seen in a 4.7% rise in Meath where the average is €234,375 almost twice the percentage increase registered in Kildare (1.8%) and Wicklow (2.4%) where average house prices are above the €260,000 mark.

The slowest growth nationwide was registered in the main cities outside of Dublin - Galway at €255,000 (up 4.1%) and Limerick at €190,000 (up 2.7%) showed growth, Cork city prices remained static over the three-month period, and just 5.1% up on the year.

REA says smaller rural towns situated outside of Dublin, the commuter belt and the major cities out-performed the national index - with prices rising by an average of 2.8% over the quarter to €142,867.

House prices in Longford have risen by 32% in the past year - but the county still has the cheapest semi-detached houses in the country at an average of €90,000, up from €68,000 in September 2016.

Longford, Leitrim (€97,000) and Donegal (€93,750) are the three counties where properties can be still be purchased for a five-figure sum.