The cost of buying a home in County Longford has “dramatically increased” by 4.4% this year, according to a Real Estate Alliance (REA) report.

It was the highest increase in any county in Ireland since December and was followed in second and third by Tipperary (3.8%) and Cavan (2.8%) – counties typically associated with low-cost housing.

The report used three-bed semi-homes as its marker, which now cost an average of €308,235 nationally - up 1.3% this year - while in Dublin that figure is €517,333 (up 1.1%).

Market shift

On The Pat Kenny Show today, REA spokesperson Barry McDonell said the new report signifies a shift in the market.

“Typically, we find Dublin has led the charge on price increases because of demands in the capital,” he said.

“However, this time around we are finding areas that offer a little affordability, such as Longford, is where the most dramatic increases are happening.”

A housing estate under construction. Image: David Creedon / Alamy Stock Photo

Mr McDonell said this is down, in some part, to a societal shift towards remote working.

“There is a cohort that has that flexibility and they may not be outside the office full time but they certainly benefit from a lesser requirement,” he said.

“The pandemic led to situations where we had to find ways to work remotely and obviously IT and broadband have improved so much too that people can work remotely for a certain portion of the week, at the very least.

“What we’re also seeing is people from these places who would have moved to Cork or Dublin for work in the past – they are now seeing an option to move home.”

Tipperary

Mr McDonell said Nenagh, the second biggest town in Tipperary with a population of 10,000, has also experienced irregular increases in home prices.

“In the first 12 weeks of trading so far this year, one of our agents has reported an average price increase of €17,000, which is staggering really,” he said.

“That might be because there is very little supply coming to the market, but generally across Tipperary we see an increase of 3.8%.

“It’s remarkable for an area like it which would have typically just been a market for local people to buy in.”

New developments

Mr McDonell said home prices stabilise when new developments are completed.

“New developments coming on song is what’s keeping a lid on prices in Dublin,” he said.

“We are seeing that new homes coming into supply in the Dublin area is helping to keep somewhat of a lid on runaway prices.

“The average increase nationwide is 3.4% and in Dublin, it is 3.8% which is along the lines of inflation.

“Yes, prices are going up but not at that strong rate we would have seen a few years ago.”

There has been no change to house prices so far this year in counties Westmeath, Offaly, Monaghan, Meath, Mayo and Carlow.

Main image: A housing development under construction, Carrigaline, County Cork. Image: David Creedon / Alamy Stock Photo