Galway House Price Survey January 2023

1st January 2023

Galway House Price Survey January 2023

The price of average three-bed semis in in both Galway city and county is expected to rise by 10% in the next 12 months, according to a survey by Real Estate Alliance.

Three-bed semi-detached homes in Galway City now cost an average of €331,000, up 10% on the December 2021 average of €302,000, the REA Average House Price Index shows.

At the end of 2022, prices in Galway county had risen by 24% annually to €220,000, from €178,000 in December 2021.

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 70% of the market in County Galway in Q4, and 35% in the city, with 40% of county sales coming from outside the area.

Prices in the city this quarter grew by 0.3%, while the county saw 4.8% growth, the Index shows.

“With the continued shortage of supply, we expect that prices will increase in 2023, but at a slower pace pending the additional interest rate increases which are expected in the coming months,” said Kevin Burke of REA McGreal Burke.

“The market is very resilient with pent-up demand.

“We expect continued strong growth in the coming year, with many new purchasers considering the county towns as Galway City properties are beyond their budgets.”

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.