The growing attractiveness of new builds, coupled with Brexit uncertainly, is the reason why the average price of a three-bed semi detached house in Louth fell by €10,000 in 2019.
That is according to a new survey carried out by Real Estate Alliance. The 4.8% year-on-year drop, from €210,000 down to €200,000, is based on an average of actual sale prices on what REA describe as ‘Ireland’s typical stock home – the three-bed semi’. The average price hit €200,000 in September and remained unchanged in the year’s final quarter.
REA say that the increasing supply of new homes and Brexit uncertainly has led to the decrease, while also pointing to an increased awareness in environmental issues and energy ratings which lead first time buyers to opt for new builds.
“The market has flat-lined in second-hand residential, due in part to the increase in supply of new homes for first time buyers. Investors are slow to move in this climate,” said Darina Collins of REA O’Brien Collins in Drogheda.
“Increasing supply of new homes plus Brexit uncertainty will continue to affect the second-hand market. Growing awareness of energy rating and environmental issues, along with first time buyer incentives, make new builds more attractive and sustainable in the 3-bed semi market,” she added.
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Locally, the time to sell remains at 10 weeks in Drogheda with the average price above county average at €210,000. In Dundalk, the time to sell duration rose by 33% from six weeks to eight between September and December 2019. Three-bed semis there are selling at an average of €190,000.
Michael Gunne of REA Gunne in Dundalk said there is a shortage of properties in the area. “As we are a border town, Brexit will also influence market trends,” he added.
Average house prices nationally fell annually for the first time since the economic recovery, the Q4 Average House Price Index, commissioned by REA, found.
The price of a three-bedroomed semi-detached house across the country fell by -0.6% over the past year after a 4.6% annual rise in 2018.
The average family home nationally now costs €234,704, the survey found – a drop of -0.1% on the Q3 figure of €235,009.