According to data from the Irish Independent/REA Average House Price Index, which will be published today, house prices across Ireland's larger towns have increased by 2% over the last 3 months.
This index focuses on recent actual sales which were achieved for Ireland's typical stock home, the three-bed semi.
Mortgage approved buyers are continuing to chase properties within their borrowing remit, while prices across the capital and major cities increase at twice the rate.
The index also revealed that the price of a three-bed semi-detached house across Ireland increased to €301,370, a rise of 1.4%. This also represents an increase of 3.7%, rising by 28% over the last 3 years.
Elsewhere, prices in Dublin also spiked by 0.8% in the last three months, meaning that the average price of a semi-detached house in the capital, with three bedrooms, can cost €504,167. This is a 1.3% jump in price from last year.
While they have increased to €500,000 in the last quarter, they are increasing at a slower pace than other regions. This increase is still enough to force buyers to look for homes outside of the capital, with the percentage of people pursuing homes in Dublin fallen from 73% to 43% since the last survey.
REA spokesperson Barry McDonald said, “While we are still seeing increases in prices, the buyer profile is changing, with younger first-time buyers being increasingly forced to travel for affordability".
McDonald also added, “A stream of interest rate rises are affecting borrowing capacity and placing ever lower ceilings on first-time buyer budgets. The condition of the property, and its BER rating, is all-important, probably now more than ever as buyers cannot afford the additional costs of home renovation".
“Supply is an issue nationally, with agents in Kerry, for example, describing it being at crisis levels, with an all-time low of residential homes on the market and no new homes planned".
