Asking prices for a three-bed semi-detached house in the county rose by €10,000 to €135,000
Property prices in Donegal have risen by an average of €6,000 during the last three months.
The MyHome.ie property report for the last quarter of 2021 shows that the median asking price for a property in the county is now €175,000, an increase of €15,000 compared with this time last year.
The report, in association with Davy, shows asking prices for a three-bed semi-detached house in the county rose by €10,000 over the quarter to €135,000. This means that prices have also risen by the same amount compared to this time last year.
The asking price for a four-bed semi-detached house in Donegal rose by €12,500 over the quarter to €170,000. This represents a year-on-year increase of €25,000.
There were 269 properties for sale in Donegal at the end of the fourth quarter of last year – a decrease of 10.3% over the quarter.
The average time for a property to go sale agreed in the county after being placed up for sale now stands at nearly four and a half months.
The author of the report, Conall MacCoille, chief economist at Davy, said that the findings painted a grim picture for prospective homebuyers.
“The unwelcome message from this quarter’s MyHome report is that there is little sign of conditions easing. This quarter’s MyHome report shows annual asking price inflation accelerating to 9.7% in Q4 2021. Prices also rose by an uncharacteristically sharp 1.2% in Q4 during the normally quiet winter months. This reflects the market grinding tighter, with the stock of homes listed for sale having fallen to a fresh historic low of just 11,300. In addition, Ireland’s labour market is performing exceptionally well, adding to housing demand.
“The shortage of stock for sale or rental is most acute outside the capital, Dublin, and is also evident in a marked decline in the average time to sale agreed to just three months nationally.”
He said that the inflation forecast for 2021 and 2022 would likely now be beaten. “We had forecast an 11% rise in Residential Property Price Index (RPPI) inflation through 2021 and 4.5% in 2022. However, RPPI inflation rose by 13.5% in October and so the out-turn for last year is now likely to beat our forecast.”
“Our analysis shows that house prices are now seven times’ average incomes. Even still, Central Bank of Ireland and Economic and Social Research Institute (ESRI) estimates suggest that the mortgage lending rules have stopped house prices rising by an additional 10-25% over and above existing levels.”
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