Two-bed apartments in Wexford in demand but auctioneer predicts house price increases to ‘slow further’
While house prices across the county have risen by a further 6 percent in the last six months, one market in particular has seen a dramatic increase since January of this year. In the last six months of 2021 a two-bed apartment in Co Wexford was being sold for, on average, €121,334, but between January and June of this year that figure rose to €131,667, an increase of 8.5 per cent.
meanwhile, during the same period, three-bed semis rose from €216,667 to €225,000 (3.85 per cent), while four-bed semis went from €251,667 to €265,000 (5.3 per cent). Nationwide, Dublin continues to be the most expensive place to buy property with the average price in Dublin 4 a whopping €928,333. The cheapest counties are Longford (€140,000), Roscommon (€153,750), Tipperary (€161,667), Cavan (€163,333), Leitrim (€165,000), and Mayo (€173,333).
Overall house prices across Ireland have increased by 6.4 per cent in the last six months. In the three-bed category among the highest increases were Galway city (12.9 per cent), Clare (11.5 per cent) Carlow (11 per cent) and Waterford (10.8 per cent). In the four-bed category the highest increases were in Roscommon (10.4 per cent), Wicklow (10.3 per cent), Clare (9.8 per cent) and Limerick (9.8 per cent).
The survey was carried out by the Institute of Professional Auctioneers & Valuers (IPAV) and its chief executive Pat Davitt said, despite a widespread rise in prices, there was a noticeable change in the level of increases in the last two months. “In the first four months the overall increase would have been of the order of 10 percent but changes during May and June brought the six months figure to 6.36 percent.
“In the latter two months the practice of increasing reserves – where the price expectations of neighborhood sellers tend to escalate when a property achieves a particular level – had almost disappeared.”
He said in the period ahead the level of price increases is likely to slow further. “In the next six months we would expect prices to taper to about the 2 percent mark with some of the more expensive areas experiencing no increases at all.”
A correction took place in Dublin 4 house prices between 2017 and 2022 that has taken five years for prices to achieve the same level again, he said. Mr Davitt said increasing interest rates “are bound to dampen sentiment, especially with the hike of 1.25 per cent already and further to come.”
He said it was disappointing to see last week’s CSO data showing the residential sector reduced its volume of output by 2.9 per cent on a seasonally adjusted basis between Quarter 1 2022 and Quarter 2 2022.
“If we can get to a stage where output grows closer to demand that would be a very desirable situation and it would create stability,” he said.