Median asking prices in Louth rise by 2.3%

Asking prices in Louth rose by an average 2.3% in the third quarter of the year according to a report carried out by Davy stockbrokers and myhome.ie.

This means that the median price for a home in Louth now stands at around €225,000.

The 2.3% rise is the smallest of any county in the country and well below the national average increase of 7.8%.

The report also revealed that those looking to buy a two bedroom apartment in Louth can expect to pay a median price of €165,000 up 10% on the year. Although the figure represents a drop of 5.71% compared with the last quarter. 

Meanwhile, those looking to buy a four bedroom semi detached house in Louth can expect to pay a median price of €277,250 an increase of 2.69% compared to last year. The figure represents a 0.82% rise compared to last quarter. 

The report notes that:

“This quarter’s MyHome.ie report shows the Irish housing market starting to cool off.”

Conall MacCoille, Chief Economist Davy Research goes on to say that the figures represent trends seen in previous years:

“The message here is that stretched valuations and overly exuberant expectations among vendors are taking a toll on pricing. 

“The 1.3% decline [nationally]  in the third quarter shouldn’t be taken as a sign that the housing market will now see persistent price falls. 

“Asking prices are typically weak as the busy summer trading season peters out and fell in both Q3 2018 and Q3 2019. 

“After the disruption of the COVID-19 pandemic, the usual seasonal pattern has re-emerged. 

“However, a sense that the housing market has peaked may have contributed to vendors returning to the market but also that activity levels are returning to normal.”

He further notes that house prices are still expected to rise overall next year despite economic challenges:

“Looking forward, we expect that Irish house prices will grow by 6% through 2022 and by 3% in 2023. 

“There are of course many risks to this view. Ireland potentially faces an energy crisis this winter amid fears of a full-blown European recession brought on by events in Ukraine and surging natural gas prices. 

“The housing market will also have to cope with the European Central Bank (ECB) raising interest rates to potentially above 2% by end-2022. This will contribute to slower price growth. 

“However, the Central Bank’s mortgage lending rules have contained both leverage and debt-service ratios on new lending, with plenty of appetite among potential homebuyers to borrow more. 

“On this point, pent-up demand in the Irish housing market remains strong.”