Donegal house prices increase 3.6pc in three months – REA survey

The price of the average second-hand three-bed semi in county Donegal rose by 3.6pc to €215,000 in the last three months, according to the latest national survey by Real Estate Alliance.

Across the county, the average time taken to reach sale agreed was five weeks, the Q1 REA Average House Price Index shows.

“The Northern Ireland market continues to have a strong influence, along with first time buyers, however we are seeing investors going out of the market,” said Roger McCarrick of REA McCarrick and Sons, Bundoran.

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Average Bundoran prices rose 4.8pc this quarter to €220,000, while prices in Milford rose 2.4pc this period to an average of €210,000. 

“There is still strong demand for properties, as the supply is still limited,” said Paul McElhinney of REA McElhinney, Milford.

The survey shows that across the county, 33pc of purchasers were first-time buyers, while a total of 55pc of sales in the county this quarter were attributed to landlords leaving the market.

Additionally, the survey found A-rated BER properties in the county are commanding 22pc price increases in comparison to C-rated properties.

The REA Average House Price Index concentrates on the 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.

The actual selling price of a three-bed, semi-detached house across the country rose by 1.5pc in the past three months to €364,747.

This represents a 7.67pc annual rise – slowing gradually from the 9pc increase registered six months ago.

With energy prices coming into focus, agents are reporting that there is a renewed focus on heating costs, with the A-rated v C-rated BER price premium rising to 13pc, up from 10pc at the end of December.

Actual selling prices in Dublin city rose by 1.6pc in the last three months, with the average three-bed semi in the capital’s postcode areas now selling at €595,453, a 6.6pc annual rise.

The percentage of first-time buyers purchasing in Dublin has dropped from 50pc to 39pc in the past six months, with agents citing a wait-and-see policy from buyers around the changes in rental legislation.

Selling prices in Ireland’s major cities outside Dublin rose by 1.2pc to an average of €378,250 – a 6.5pc annual increase, with homes selling in four weeks on average.

Homes in the country’s large towns rose by 2pc this quarter and 9pc annually to an average of €281,287, while prices in commuter counties rose by 1pc to €377,185.