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Tuesday 5 December 2023 Dublin: 4°C
Housing Crisis

Average price of 3-bed semi in Ireland breaches €300,000 for first time since 2007

The latest REA index shows that high interest rates are pushing first-time buyers out of Dublin.

HOUSE PRICES IN Ireland have risen again in the last quarter, and the average price of a three-bed semi detached home has surpassed €300,000 for the first time since 2007. 

House prices in large towns have risen by 2% in the past three months, and are increasing at twice the rate of Dublin and major cities. 

The figures, published by the Real Estate Alliance (REA) in its latest house price index, show that first-time buyers are being forced out of Dublin due to rising interest rates and high prices. 

Over the last three months, prices in Dublin city rose by 0.8%, meaning that the average three-bed semi in the city is now selling at €504,167 – an increase of 1.3% in the last year. 

The number of first-time buyers in the capital fell dramatically over the last quarter however, from 72% a year ago, to 43% in the REA’s latest survey. 

Barry McDonald, REA spokesperson, said: “While we are still seeing increases in prices, the buyer profile is changing, with younger first-time buyers being increasingly forced to travel for affordability.”

“A stream of interest rate rises are affecting borrowing capacity and placing ever lower ceilings on first-time buyer budgets,” he added. 

Nationally, the average price for a three-bed semi is now €301,370. This figure has increased by 1.4 percent in the last quarter, 3.7% since last year, and by 28% over the past three years. 

In the last quarter, the time taken to agree a sale fell from six to five weeks. 

The REA said that this is because “low supply continues to drive sales in an increasing interest rate environment”. 

House prices in Cork and Limerick have risen since the REA’s last survey, while prices in Waterford and Galway have remained static. 

Limerick has seen 65% of sales directly linked to landlords exiting the market, according to REA. 

The REA predicts that the extension of rent pressure zones to the whole country will result in a larger supply of ex-rental properties going up for sale. 

Commuter areas also saw a rise in house prices according to the index, by 1.1 percent – resulting in a new average price of €318,889 for a three-bed semi. 

39% of buyers in areas including Louth, Meath, Kildare and Wicklow came from outside these counties over the last three months, with a “large proportion” of them coming from Dublin. 

Co Sligo saw the biggest increase in the last quarter, although the average price of a three bed semi there remains comparatively low (€215,000). 

Wicklow, Roscommon, Galway city, South Dublin, Cavan and Clare did not see any increase in average house prices over the last quarter. 

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