Average Waterford city house price jumped by €5,000 in just three months

The price of the average second-hand three-bed semi in Waterford city has increased to €300,000, up 1.7% from €295,000 in the last three months, according to a national survey by Real Estate Alliance.

The market in Waterford county this quarter increased to an average of €250,000, up 2% from €245,000, the Q1 REA Average House Price Index shows.

The survey shows that 75% of purchasers in the city and 50% across the county were first-time buyers, and 20% of purchasers in both the city and across the county were from outside of the county. 

A total of 30% of sales in the city and 25% in the county this quarter were attributed to landlords leaving the market.

“We are seeing continued limited supply,” said Barry McDonald of REA O’Shea O’Toole, Waterford city.

“The vacant property grant has really helped sell houses needing modernisation if they qualify.”

Across the county, the average time taken to sell currently sits at four weeks, while time to sell in the city is currently at an average of six weeks. 

“The biggest influencing factor on the market is the reduced level of additional second-hand stock coming for sale,” said Eamonn Spratt of REA Spratt, Dungarvan.

“It must be said that prospective purchasers today are more inquisitive as to energy ratings than in previous years."

The actual selling price of a three-bed, semi-detached house across the country rose by 1.3pc in the first quarter to €308,235.

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.

Time taken to reach sale agreed nationally is steady at five weeks as historically low supply continues to drive sales - amidst a belief that interest rates may have peaked.

“There continues to be strong demand throughout the country as buyers compete for the lowest supply of residential property in two decades – despite the high level of values and interest rates,” said REA spokesperson, Barry McDonald.

“On the positive side for potential homeowners, the Vacant Property Refurbishment Grant has finally kicked in, opening up a market for homes in need of improvement.

“These were the type of property previously really hard to sell with people afraid of refurbishment costs, limiting the market to builders and developers. 

“If a home is declared vacant for two years or more, and it qualifies under the scheme, buyers know they can avail of a grant for refurbishment of up to €50,000 and up to €70,000 if there is a structural issue.”

Mortgage-approved first-time buyers are still the main market drivers, accounting for 59pc of sales nationally.

Major cities outside the capital experienced the highest rise in the Q1 survey – up by an average of over €5,000 in the last three months. The 1.8pc increase is equivalent to an average selling price of €328,750 – with the annual rate of increase at 6pc.