IPAV’s current Residential Property Price Barometer shows that the overall average increase in property prices for 2021 was just short of 12%. The Institute of Professional Auctioneers & Valuers records house prices auctioneers achieved for three- and four- bedroom semi-detached homes and two-bedroom apartments.
Providing a county-by-county breakdown for each property type, the latest barometer catalogues prices in the latter half of 2021, comparing them with prices in the first half of the year.
Mayo noted a 13.04% increase in the three-bedroom category in the latter six months of 2021. This was the second-highest, along with Wexford and just behind Clare. There was a 7.14% increase for 4-bedroom houses and 3.03% for two-bedroom apartments.
Chief executive of IPAV, Pat Davitt, commented that during 2021 the differential between asking and achieved prices was “crucial”. He added that “intense” demand against a scarcity of supply led to a trend whereby agreed prices often exceeded asking prices, sometimes to a “considerable” degree.
“However, there is a myriad of factors impacting the market. Many buyers, particularly those with family connections to the country, now see living in the country as a realistic, more affordable option given the new hybrid working arrangements,” he said.
His observation is thatcoastal or “unique” properties are attracting greater interest. “Hence we are seeing the higher increases this time around in areas like Wexford, Clare, Mayo and Donegal.” And while prices are “now very close” to 2006/7 levels, the market is “drastically different”.
He views scarcity of supply as a problem, with the current market favouring those on higher incomes and those fortunate enough to have family support.
IPAV has sought adjustments to the Central Bank mortgage rules, particularly to assist those on average incomes who could afford to service a mortgage.
Mr Davitt said supply is improving, but so far not quickly enough. In his view Ireland needs measures that tackle severe planning impediments, and that the “storm clouds of rising inflation” could scupper many prospective buyers.
“While the ECB is not predicting an interest rate rise for 2022, if current high levels of inflation across the EU persevere, that situation will no doubt change, hampering the ambitions of some buyers but also impacting house prices, which for now look like continuing on an upward trajectory,” he concluded.
LSL News.