Donegal House Price Survey January 2023
1st January 2023
The price of the average three-bed semi in County Donegal is expected to rise by 3% in the next 12 months, according to a survey by Real Estate Alliance.
Three-bed semi-detached homes in the county now cost an average of €145,000, up 14% on the December 2021 average of €127,500, the REA Average House Price Index shows.
The 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 second-hand property market in towns and cities countrywide.
First time buyers made up 12% of the market in Q4 2022, with 32% of sales coming from outside the county.
Across the county, the average time taken to sell has remained at four weeks, the REA Average House Price Index shows.
“Lack of new building is driving up the price continually of existing stock. I expect prices will continue to rise by at least 5%,” said Roger McCarrick of REA McCarrick and Sons, Bundoran.
Average Bundoran prices rose by 3.45% to €150,000 this quarter. Prices in Milford increased by 3.7% this period to €140,000.
“Our expectations are much the same for 2023 as we had for the year just gone,” said Paul McElhinney of REA McElhinney, Milford.
“There will be no significant surge in properties to the market, so demand will remain strong for properties that are available.
“There is still a good demand for property in the county but overall supply levels remain poor.
“House prices are still rising, but with the cost of construction rising, it is still cheaper to buy than build a house, so new build properties to the market are very limited.”
The actual selling price of a three-bedroomed semi-detached house across the country rose by 0.36% over the past three months to €291,667 – representing an annual increase of 8%.
However, house prices in Dublin have fallen slightly by -0.34% in the same period, as mortgage interest rate rises and cost of living increases stem the stream of potential homeowners.
REA agents throughout the country expect prices to rise by just under 3% on average in the next 12 months.
The property market is expected to enjoy a calmer 2023 as mortgage interest rate rises and cost of living increases affect buying ability, according to the nationwide survey.
The majority of REA members feel that the scheduled changes to the Planning Acts will have little effect on market supply in 2023, due to the time lag between legislation and enactment.
In Dublin city, which is currently experiencing small price drops in certain areas, agents anticipate modest increases of 3.6% across the year.
This comes off the back of a 2022 which saw average house prices rise by 8% nationally and 5% in the capital – with feverish early year increases slowing down in the autumn and winter.
The country’s large towns experienced 10% growth last year, with 1.2% in the final quarter, and REA agents say that this will continue throughout next year, albeit at a slower pace, with growth of 3% predicted.