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'Panic buying' is gone from the property market say estate agents

The Real Estate Alliance say that prices are rising but homebuyers aren’t feeling pressured.

Image: Eamonn Farrell/Photocall Ireland

THE AVERAGE PRICE of a three-bed semi has grown by almost 18% since the start of the year but people are not currently “panic buying” according to estate agents.

A new survey carried out by chartered surveyors group Real Estate Alliance concentrates on the price of three-bed semis across Irish towns and cities and found that their average price nationally is now €179,981.

The average price of a three-bed semi in Dublin is higher at €375,833 with the REA outlining what it sees as a “three-tier market”.

Despite this, REA CEO Philip Farrell says that there is evidence to show that people are not feeling pressurised into buying a home:

Prices are continuing to rise at a pace in Dublin, but our agents are reporting that the panic buying seems have gone out of the market, with less people at viewings and houses taking a week longer on average to sell.

The average property is now taking just seven weeks to sell nationwide, on average over 41% quicker than six months ago. However, Dublin has seen an increase in time to sell, with houses now taking five weeks on average to close, up from four in June.

“Our agents are reporting that there are more private houses now for sale, which is giving the discerning purchaser a better choice and as a result there is not the same amount of bidders as there were in the first six months of the year,” adds Farrell.

PastedImage-8857 Source: Real Estate Alliance

Dublin commuter areas have seen some of the most dramatic price rises recently with both South Dublin and Lucan recording rises of 15.38% over the past three months alone.

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REA say that that the Tallaght area of Dublin has seen a “meteoric rise” so far this year with prices jumping by 37.5% since January.

Other findings from the survey suggest that banks are financing house buyers to a greater extent with the amount of cash transactions dropping from an average of 66% in in December of last year to 50% last month.

Read: Can’t afford a house like this? Well, at least now we know who can >

Read: Aaron McKenna: The Central Bank mortgage restrictions make great sense – here’s why >

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Rónán Duffy

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