The average house price across Donegal is on the rise, but prices in South Donegal remain unchanged due to uncertainty in Northern Ireland, according to Real Estate Alliance.
The REA Average House Price Survey shows the price of the average three-bed semi in Co Donegal has risen 1.4% to €88,750 in the last three months.
Prices for three bed semis have remained at €85,000 in South Donegal for the past three quarters, but this masks a huge drop off in business from the North, according to REA McElhinney in Bundoran.
“There is an overall hit to confidence and to people’s willingness to make a major financial commitment to property while there is uncertainty over the border,” said Michael McElhinney.
The REA Average House Price Survey concentrates on the actual 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.
McElhinney said there has been an increase in dollar interest and the market for second homes has started to spark again with families with children relocating from the Dublin market.
“We have seen a definite increase in people working remotely – living and operating in Donegal, North Leitrim and Sligo and maybe commuting twice monthly to Dublin,” said Michael McElhinney.
Prices in Milord have risen by 2.8% to €92,500 in the past quarter, where there is good demand for semi-detached properties in the main towns and any properties that are put on the market attract good interest, according to Paul McElhinney from REA McElhinney in Milford.
Paul McElhinney said: “A continued lack of supply is still driving this demand although prices are not rising to sufficient levels yet to encourage new builds.”
The average semi-detached house nationally now costs €215,269, the Q2 REA Average House Price Survey has found – a rise of 2.5% on the Q1 figure of €209,944.
Overall, the average house price across the country has risen by 11.2% over the past 12 months – in contrast to the 4.5% increase registered to the full year to June 2016.
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