Waterford city house prices set to rise by 10% in the next 12 months
The price of the average three-bed semi in Waterford city is expected to rise by 10% in the next 12 months, according to a survey carried out by Real Estate Alliance.
The survey predicts Waterford city will have the largest national price rise, along with Longford.
In County Waterford, the price of a three-bed semi is expected to rise by 5% in 2019. Prices in the city rose by 7.7% to €210,000 in 2018, with a rise of 2.4% between September and December.
In County Waterford, prices rose by 3.8% to €176,500 last year, with no change between September and December.
The REA Average House Price 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.
The price of housing in Waterford city at €210,000 is one of the reasons for its 2.4% rise in Q4, and 7.7% annual increase, according to REA spokesperson Barry McDonald.
“Our agents REA O’Shea O’Toole report that demand continues to be strong and asking prices are being exceeded by competitive bidding, with properties achieving sale agreed status within four weeks of being put on the market,” he said.
“Demand continues to be strong and asking prices are being exceeded by competitive bidding in Waterford city,” said Des O’Shea of REA O’Shea O’Toole.
“We expect the 2019 market to be buoyant. Factors include easier access to mortgage finance, good demand and scarcity of given property types.
“Properties are sale agreed within four weeks of going on the market.”
Whilst there has been a high volume of transactions, the number of enquiries has reduced, said Eamonn Spratt of REA Spratt in Dungarvan. “There is a scarcity of rental supply due to a significant number of landlords exiting the market,” he said.
“This may influence new landlords who are gauging the chance of higher returns on their investment.
“There’s demand for larger four-bedroom homes to satisfy younger families trading up.”
The average semi-detached house nationally now costs €236,287, the Q4 REA Average House Price Survey has found – a rise of 0.6% on the Q3 2018 figure of €234,284.
Overall, the average house price across the country rose by 4.6% in 2018- a decrease on the 5.4% recorded to September and indicating that the market is continuing to steady after an 11.3% overall rise in 2017.
Growth in the commuter counties also slowed to 0.38% in the last three months – an annual rise of 4.18% – with the average house now selling for €249,472. This is an annual rise of €10,000 and growth of €2,000 in the last three months.
The country’s major cities outside Dublin recorded the biggest rise of the quarter at 1.25% - an annual increase of 5.81% - with an average three-bed semi costing €252,500. The biggest urban rise was seen in Galway city, where selling prices rose by 2.7% in the quarter to €282,500 – a yearly increase of 9.7%.
The highest annual increases (7.7%) were once again seen in the rest of the country’s towns, which rose in selling price by an average of €10,000 in 2018 and which experienced a 0.85% rise in Q4 to an average of €157,717.
“In these areas, you largely have the perfect storm of affordability within the 10% deposit range, and no new homes as it is still uneconomical to build in many places,” said McDonald.
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