Average Offaly house costs €20,000 more than last year
Property prices in Offaly have risen by €20,000 in the last year, according to the latest MyHome.ie Property Report in association with Davy.
The report for Q1 2018 shows that the median asking price for a property in the county now stands at €170,000. This is up €5,000 or 3% from the previous quarter at the end of 2017 but is also up 13.3% from €150,000 at the same stage last year.
Daft.ie reported a similar figure late last week, suggesting the average price is now €177,000.
The latest price increase has left the asking price for a home in the county at its highest level in more than six years since it stood at €200,000 at the end of Q4 2011, according to MyHome.ie
Only Carlow at 20% has seen a bigger percentage increase in prices over the last 12 months.
This increase has been reflecting the asking price of a 3-bed semi-detached home in the county. This also rose by €5,000 in the first three months of the year following a 3.9% increase to €135,000.
This contributed to an annual increase of 6.3%, with asking prices for this house type now €8,000 up on this time last year when it stood at €127,000.
There was a more modest rise of 0.03% in the quarter in terms of the asking price for a 4-bed semi-detached house in Offaly. This rose to €180,000 but was €7,500 up on the same stage last year following an annual increase of 4.4%. This rise means prices for this house type in the county are now at their highest level since Q2 2011.
Offaly is one of just five counties along with Dublin, Galway, Sligo and Laois where the number of properties for sale at present has grown from this time last year with stock up 0.3% year-on-year. The average time to go sale agreed on a property in the county now stands at 5 months.
The report found that the prices of newly listed properties nationally rose by 4.8% in Q1 while prices in Dublin rose by 3.3%. Newly listed properties are seen as the most reliable indicator of future price movements.
The median asking price for new sales nationally is €260K while in Dublin it’s €345K. The figure for outside Dublin is €210K. Nationally, asking prices are up 9.5% on the year, while in Dublin price inflation is 8.2%.
The author of the report, Conall MacCoille, Chief Economist at Davy, said that while house price inflation would remain close to 10% outside Dublin for 2018, stretched affordability in the capital and a pick-up in housing supply suggested the rate of inflation would continue to moderate.
“The tightening of the Central Bank mortgage lending rules coupled with stretched affordability was always likely to be first felt in Dublin. The house price -to-income ratio for first-time buyers in Dublin was 4:1 at the end of 2017 and this compares with 3.5:1 recorded in Cork, Galway, Limerick and Waterford. Inflation in Dublin is now 8.2%, down from just over 11% in Q4 2017. The cooling off is already evident in more expensive areas and property types.”
“The other key trend we are seeing is that house supply is finally picking up. The number of new developments on MyHome has increased to 423, up 24% on the 342 recorded in mid-2017. While two thirds of these developments are in the greater Dublin area there has also been a sharp increase in Cork where the number is 64, up 68% on mid-2017. Although moving in the right direction the current level of homebuilding – circa 12,000 per annum – remains well short of the natural demographic demand of at least 35,000 each year,” MacCoille concluded.
The Managing Director of MyHome.ie Angela Keegan said that while first time buyers would continue to be concerned at the rate of inflation, there were some positive trends in the new figures.
“Transactions levels are up 10% in the first two months of the year and at this stage we would be predicting an 11% increase on last year’s figure of 54,000. Given that the level of transactions was 18,400 in 2011 it is encouraging to see that we should be in or around the 60,000 mark this year.”
“Meanwhile activity at the very top end of the market shows little sign of slowing down. Our analysis of the Property Price Register shows that the number of house sales above €1m rose to 826 in 2017, up 25% on the previous year. There are currently 506 properties with an asking price exceeding €1m listed for sale on MyHome.ie,” Keegan said.
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