Donegal house prices rise 1.8% in three months – survey

The price of the average second-hand three-bed semi in County Donegal has risen by 1.8% to €140,000 in the last three months, according to the latest national survey by Real Estate Alliance.

Across the county, time taken to sell currently sits at four weeks, the Q3 REA Average House Price Index shows.

Donegal agents are reporting that 12% of purchasers this quarter were first time buyers, with almost a third of buyers coming from outside of the county at 32%.

Additionally, the data shows that BER A-rated homes are commanding a 10% premium over their C-rated equivalents.

“We have seen that there is continued strong demand in the market from Northern Ireland purchasers for holiday homes in the area,” said Roger McCarrick of REA McCarrick and Sons, Bundoran.

Average prices in Bundoran now stand at €145,000, up 3.6%, with time taken to sell rising by one week to an average of four.

During this period, prices in Milford remained at €135,000, unchanged from Quarter 2, with time taken to sell at four weeks, also unchanged.

Nationally, the rate of house price inflation has halved in the past three months as rising costs cause home buyers to be more cautious.

The actual selling price of a three-bedroomed semi-detached house across the country rose by 1.4% over the past three months to €290,630 – representing an annual increase of 10%.

This is a marked slowdown on the 2.9% quarterly increase recorded in the preceding three months, signalling a cooling of the frenetic demand in the marketplace.

And the index found that A rated homes are commanding a 12% premium over their C rated equivalents – a figure that rises to 16% in the capital as running costs become more important to home buyers.

The REA Average House Price Survey 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.

Time taken to reach sale agreed rose to five weeks from four as REA agents nationwide reported a less frenzied approach to viewing and buying.

While the actual average selling price of three bedroomed homes in Dublin city is about to breach the €500,000 mark, the 0.8% quarterly rise to €497,500 is half that experienced in the previous three months.

58% of all purchasers in the past quarter were first-time buyers according to REA, a figure which rose to 76% in Dublin as people with mortgage approval look to get on the housing ladder.