Revealed: Houses prices soar in lower priced counties as buyers seek affordability

House price increases in some of the more affordable counties in Ireland have jumped by up to three times above the national average in the first three months of the year.

The details are revealed in the latest REA Average House Price Index which shows houses prices have jumped considerably in counties where better value is offered.

House buyers are willing to move from Dublin and larger cities in search of affordability,  with three-bed houses in Longford,  selling at an average of €181,700 – a rise of €7,700 (4.4pc) in just 12 weeks, or well over 1pc a month.

This level of increase is more on a level which was encountered in during the Celtic Tiger boom years.

The national average selling price of a three-bed, semi-detached house is now €308,235 which is up 1.3pc in the same three-month period.

The REA Average House Price Index, a quarterly bulletin that analyses up-to-date sale prices of Ireland’s typical stock home, gives an accurate picture of the second-hand property market in towns and cities countrywide.

Similar rises have been reported in other more affordable counties like Cavan and Tipperary, with prices up €17,500 (7pc) in Nenagh in the first quarter of this year being the highest recorded nationwide.

Prices in Dublin city rose by 1.1pc in the last three months, meaning that the average three-bed semi in the capital is now selling at €517,333 – an increase of 3.8pc in the last year.

“There continues to be strong demand throughout the country as buyers compete for the lowest supply of residential property in two decades – despite the high level of values and interest rates,” said REA spokesperson, Barry McDonald.

“On the positive side for potential homeowners, the Vacant Property Refurbishment Grant has finally kicked in, opening up a market for homes in need of improvement.

“These were the type of property previously really hard to sell with people afraid of refurbishment costs, limiting the market to builders and developers. 

“If a home is declared vacant for two years or more, and it qualifies under the scheme, buyers know they can avail of a grant for refurbishment of up to €50,000 and up to €70,000 if there is a structural issue.”

Major cities outside the capital experienced the highest rise in the Q1 2024 survey – up by an average of over €5,000 in the last three months. The 1.8pc increase is equivalent to an average selling price of €328,750 – with the annual rate of increase at 6pc.

Homes in commuter counties rose by 0.6pc over the past three months to an average of €321,667, with a 1.3pc rise in Kildare and prices relatively static in Meath, Louth and Wicklow.

Longford experienced the highest rise per county in the survey, with average three bed semis now selling at €181,700 – a 4.4pc increase in just 12 weeks.

Local agent Joe Brady said that Longford’s accessibility to Dublin is still a big draw for those who are hybrid working. 

“We expect a rise in values by as much as 5% this spring, based on current sales. To date, there are no new homes on the market in County Longford and it may be late 2024 or into 2025 before we see more new supply,” he said.

Nenagh in Tipperary saw prices increase by 7pc to €265,000 in 12 weeks – a rise of €17,500 – as extreme shortages of supply saw intense competition for each house, according to REA agent Eoin Dillion.