Rise in house prices, but alarming decline in supply everywhere

THE average price for a house in Cork county is now €233,249 – up 3.3% on last year.

That’s according to the latest house price report released by property website Daft.ie.

It found that the average national price in the first quarter last year was €256k and this has increased to €276k this quarter.

This marks the second quarter in a row where prices are nearly 8% higher than a year previously, roughly twice the rate of inflation seen during 2018 and 2019. The average sale price nationwide in the first quarter of 2021 was €275,751, up 68% from its lowest point in early 2013 but still one quarter below the Celtic Tiger peak.

In Dublin, prices rose by 6.9% in the year to March 2021, but the largest increases were seen in the counties surrounding Dublin and in the other cities. In Cork, Galway, Limerick and Waterford cities, listed prices were between 11% and 12% higher in the first quarter of 2021 than a year previously, while in Leinster (outside Dublin), they were 12.4% higher on average.

The total number of properties available to buy on March 1st was just under 12,000, the lowest figure recorded since the rise of advertising properties for sale online. This represents a year-on-year fall of 40% nationwide. Author of the report Ronan Lyons, economist at Trinity College said: ‘The figures in this latest Daft.ie report confirm that the impact of Covid-19 on the sale market was a massive shock to supply, with seemingly far less impact on demand. The total number of homes listed for sale in the 12 months to February nationwide was just 45,700, down a third on the previous 12-month period.’