Tipperary House Prices Rise In Last Three Months
The price of the average three-bed semi detached house in Tipperary have risen by 1.38% to €128,625 in the last three months, a nationwide property survey has found.
The REA Average House Price Survey 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 to the end of the selling season in December.
REA agents in Tipperary are predicting that prices will rise 3.8% in 2016, after a 6.63% rise in the price of the average three bed semi in 2015.
“The market in rural towns only started to catch up on provincial towns in the north of the county during the second half of the year. Property had a slight increase in these secondary towns from a very low base,” said Seamus Browne from REA Seamus Browne in Roscrea.
“We are concerned over the lack of availability of finance and the fact that the cash buyer seems to be more active again in the market since the summer of 2015. We need to have a good flow of finance for market growth.”
“The lack of availability of houses in the first time buyer section is becoming a major issue and the 20pc deposit requirement needs to be revisited,” said John Stokes from REA Stokes & Quirke in Clonmel.
“However, we find consumer confidence has increased greatly and in certain sections of the market demand is outstripping supply.”
According to Eoin Dillon from REA Eoin Dillon in Nenagh, there is extremely tight supply in the town, and while the market there may have cooled off a little since September, it’s hard to tell exactly due to the low volume of stock.
The average semi detached house nationally now costs €188,370, the Q4 REA Average House Price Survey has found – a slight rise on the Q3 figure of €186,102.
Prices in Dublin city and county fell by -0.75% in Q4, while Dublin city alone fell by -0.69% – the average three-bed semi now costing €357,500.
However, the biggest growth was in the rest of the country outside the commuter belt and larger cities, where house prices increased by 0.95% in the last three months.
The lack of suitable supply is the biggest influence on the property market nationwide, according to REA Chairman Michael O’Connor.
“What we have seen in the last three months are prices only increasing in areas that are offering people the accommodation that they require,” he said.
“People may want to buy housing, but if suitable properties are not available, they will not buy.
“We are seeing a lack of supply of good quality three-bed semi-detached houses across the country, and a desperate need for new developments.
“In many areas, the properties available in the sub-€220,000 level are either apartments, houses that are too small or need too much investment to bring them up to standard.
“The market is still stalled at the second–time buyer level, due to the restrictive nature of the Central Bank’s deposit lending rules.
“Many potential second-time buyers now only have the option of renting bigger houses and letting out their own, as they are not able to afford the 20% deposit to be able to purchase.
“There are very few suitable houses to buy at the lower end of the market for first-time buyers because potential second-time buyers have no way to trade upwards.
“While Dublin was the first region to recover, followed by the commuter areas, we are now seeing an increase in values in our largest cities outside Dublin a year later, and one-by-one our smaller towns have started to see increases.
“For the first time we are seeing developers trying to buy land in the anticipation of building as it is now economical to build in some of our larger cities.”
