The price of an average three bedroom semi detached house in Donegal has risen by 1.76% to €86,500 in the last three months, according to a national survey carried out by Real Estate Alliance.
The REA Average House Price Index concentrates on the sale price of Ireland’s typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide.
“Sales of semi-detached houses has slowed down this quarter primarily due to continued lack of stock, however listed properties are generating good interest and there is still a steady demand,” said Paul McElhinney from REA McElhinney in Milford.
According to Michael McElhinney from REA McElhinney in Bundoran, there is strong demand with poor supply in the south Donegal and north Leitrim areas.
A nationwide supply shortage has fuelled a rise of over 2% in the price of the average house in the last three months, with the majority of counties in the State recording price increases in Quarter Two this year, the latest Real Estate Alliance Average House Price Survey found.
Further South, it is the lack of supply of suitable properties in a scarce market that has caused these rises, exacerbated by the effect of would-be commuters moving ever further from Dublin to acquire affordable homes.
“We are seeing firms who are in business for 50 years who have never experienced such a low level of supply, and this is responsible for causing sharp increases in prices in some areas over the past three months,” said REA Chairman Michael O’Connor.
The average three bed semi nationally now costs €195,361, an increase of over €4,000 (+2.18%) since the end of March. This is a rise of 4.49% against the same time last year.
Prices in the county as a whole have gone up by 4.44% to €235,000 over the past three months.
REA Chairman Michael O’Connor said: “We feel that the State ultimately needs to implement a 50% VAT reduction on new homes, backed up by rebate schemes on local development charges on a nationwide basis… NAMA need to accelerate sales of land on the open market as well as selling through loan sales… in conjunction, there is a need to fast track planning within the correct zoning for urban land bought within the next two years.”
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