Mayo house prices rise 1% in twelve months – survey

THE price of the average second-hand three-bed semi in County Mayo has increased to €192,500, up 1% from €190,000 in the last 12 months, according to a national survey by Real Estate Alliance.

This quarter, prices remained unchanged, with the average time to sell in the county currently sitting at seven weeks, the Q1 REA Average House Price Index shows.

The survey shows that across the county, 60% of purchasers were first-time buyers, and 20% of purchasers were from outside of the county.

A total of 20% of sales in the county this quarter were attributed to landlords leaving the market.

The average price in Westport currently sits at €270,000, and Castlebar prices are currently at an average of €192,500.

“Supply remains limited, and this is underpinning the increases in property prices,” said Robert McGreal of REA McGreal Burke.

“Increased mortgage repayments are limiting the level of increase, and we expect the rate of growth to increase in line with the decreases in the ECB interest rates, if they occur.”

The actual selling price of a three-bed, semi-detached house across the country rose by 1.3pc in the first quarter to €308,235.

The REA Average House Price Index concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.

Time taken to reach sale agreed nationally is steady at five weeks as historically low supply continues to drive sales - amidst a belief that interest rates may have peaked.

“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.”

Mortgage-approved first-time buyers are still the main market drivers, accounting for 59pc of sales nationally.

Major cities outside the capital experienced the highest rise in the Q1 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.