LISTEN: Cork needs more new homes. Supply is not meeting demand

3 April 2021
By Bryan Smyth
bryan@TheCork.ie

“A lack of stock coming to the market remains an issue”
says Michael O’Donoghue of REA O’Donoghue & Clarke, Cork.

The price of the average second-hand three-bed Semi-D in Cork city has increased by 1.6% to €325,000 in the last 12 months, according to a national survey by Real Estate Alliance.

Across the county prices rose 1.3% over the past three months to €182,000, and the average time taken to sell has reflected a national trend and fallen to seven weeks from eight between December and March, the Q1 REA Average House Price Index shows.

In the city, average time taken to sell remains at eight weeks this quarter, and prices were also unchanged in this period.

“Overall demand continues to be relatively strong with a mixture of both mortgage approved and cash purchasers, but a lack of stock coming to the market remains an issue,” said Michael O’Donoghue of REA O’Donoghue & Clarke, Cork.

“The continuing Level 5 restrictions are having an impact, and whilst virtual tours give a purchaser a picture of the property, we have found to date that any interested party will not commit until they have viewed the property concerned.

“In our opinion, the market at this point is still quite stable with steady demand overall for various property types throughout the city and county.”

Average house prices rose by almost 2% over the past three months, despite the absence of physical viewing, in a marketplace which is seeing the lowest supply and the shortest time taken to sell in recent history.

The REA Average House Price Survey concentrates on the actual 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.

The price of a three-bedroomed semi-detached house across the country rose by almost €4,500 over the past three months to €243,603 – representing an annual increase of 3.6%.

The average three bed semi is now reaching sale agreed after just five weeks on the market across the country – almost half the nine-week average this time last year.

Not having to schedule appointments has led to potential buyers making swift bidding decisions on the back of virtual viewings, speeding up the selling process according to REA.

The biggest rises in Q1 came in commuter counties as buyers move out further from the city in preparation for long-term hybrid working situations.

Dublin city experienced its biggest quarterly rise in over three years as the price of a three-bedroomed semi-detached house rose by 1.5% to €438,500 during the past 12 weeks.

This represents an annual increase of 2.7% and means that the average Dublin three bed semi has now recovered to its December 2017 price level after a period of decreases, mainly in 2019.

Cork, Limerick, Galway and Waterford cities shared a combined increase of 1.2% in the past 12 weeks with prices rising by €3,000 to an average of €265,625.

Three bed semis in commuter counties rose 2.3% by almost €6,000 in the past three months to an average of €258,889 – with the average home selling in four weeks – down from a high of 11 a year ago.

As the flight to rural locations continues, prices in the rest of the country’s towns rose by over 2% in Q1 to €168,828.

Barry McDonald, Director, REA McDonald, Lucan, Dublin had this to say:

 

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