Tipperary house prices are 'out of control'

HOUSE prices in Tipperary are causing terrible distress for those hoping to buy a home and have spiralled out of control according to elected representatives.

House prices in Tipperary went up €2,500 in the last three months according to the latest figures from MyHome.ie and the price of the average second hand, three-bed semi-detached house in county Tipperary is predicted to increase by five percent in 2024, according to a national survey by Real Estate Alliance (REA).

Three-bed semi-detached homes in the county now cost an average of €234,875, up 10 percent on the December 2022 average of €213,750, the quarter four REA Average House Price Index shows.

County agents reported that first-time buyers made up 83 percent of the market in quarter four, with 15 percent of sales coming from outside the county, and 23 percent of sales attributed to landlords selling properties.

Average prices in Nenagh in 2023 rose by 7.6 percent to €247,500.

“There have been practically no three-bed semis for sale in Nenagh in quarter four, and those that did come to the market were quickly snapped up,” said Eoin Dillon of REA Eoin Dillon Nenagh.

Roscrea prices rose by 5.4 percent over the last 12 months to an average of €195,000.

“The market in Roscrea is steady, with supply meeting demand,” said Seamus Browne of REA Seamus Browne, Roscrea.

“We are seeing a 20% increase in property transactions in 2023 compared to the same period in 2022”, Mr Browne said.

The REA Average House Price Index concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second hand property market in towns and cities countrywide.

Three-bed semi prices nationally will rise by 3 percent in 2024, estate agents across the country are predicting.

A record shortage of supply has driven a 1.5 percent rise in the last three months in the capital, but only in houses under a certain price, the index found.

The latest survey by property website MyHome.ie shows the median asking price in the county is €202,500 for the final quarter of last year.

That’s up €7,500 compared with this time last year. Managing Director of MyHome.ie Joanne Geary says this rise is similar to what’s happening across the rest of the country.

The price of larger 4-beds homes dropped in Tipperary in the last three months.

The MyHome.ie data shows the median asking price for a 4-bed semi fell by €5,000 over the 4th quarter of 2023 to €215,000

Overall prices in the county went up with a 3-bed semi-detached house up by €5,000 to €195,000.

The bleak predictions have prompted Tipperary Sinn Féin TD, Martin Browne, to declare that new house prices in Tipperary are "out of control".

Deputy Browne said the Government's failure to deliver affordable homes is "making the crisis worse".

He was responding to the latest Daft.ie house price report which shows that the median price of a new build home in Tipperary is €320,400.

"The Daft.ie report on house prices in Q4 2023 shows that the price of an average home continues to rise. Across the state the price of an average home rose 3.4% in the last 12 months to €320k. In Tipperary the average price of a home is now €242,002, having risen 8.6% year-on-year", Deputy Browne said.

"The report also highlights a worrying drop in the number of homes listed in December compared with the previous year, by a significant 27%.

"However, the most startling fact in the report is the price of new build homes. There is now almost a 30% difference between the price of an average new home and overall average prices. Statewide the price of an average new home is €407k, €80k more expensive than the average for new and second-hand homes combined.

"In Tipperary the average price of a new build home is now €320,400. The gap between new and second-hand homes is enormous and growing. This is a direct consequence of bad Government policy, demand side subsidies such as so called 'Help to Buy' and the controversial Shared Equity Loan scheme, all pushing up new house prices.

"Meanwhile the Government's failure to deliver on their embarrassingly low affordable purchase targets is making the crisis worse.Government policy must shift to bringing the price of new homes down. 

"They must end policies that push up house prices and they must increase and accelerate the delivery of genuinely affordable homes by Local Authorities and AHBs, at prices that working people can genuinely afford", Deputy Browne said.