29 September 2021
By Tom Collins
Median asking price for a property in the county now at €252,000 – Latest survey shows asking prices nationally up 9% year-on-year
Monday, September 27th, 2021. Property prices in Cork have continued the national trend and risen by €2,000 during the quarter, according to the latest MyHome.ie Property Report.
The report for Q3 2021, in association with Davy, shows that the median asking price for a property in the county has risen to €252,000. This is continuing with the overall national picture, which saw a quarterly increase in asking prices of 2%.
Asking prices for a 3-bed semi-detached house in the county rose by €5,000 over the quarter to €255,000. This means that prices in the segment have risen by €7,500 compared to this time last year.
Meanwhile, the asking price for a 4-bed semi-detached house in Cork remained steady over the quarter to €310,000. However, this still represents a year-on-year increase of €10,000 in the segment.
The number of properties for sale in Cork on MyHome.ie rose by 5.7% in the last quarter.
The average time for a property to go “sale agreed” in the county after being placed up for sale now stands at nearly six months. In the city, it is just over three and a half months.
The author of the report, Conall MacCoille, Chief Economist at Davy, said that the findings of the report would provide little respite for homebuyers.
“The market is still starved of supply, with prices being bid-up aggressively by homebuyers. This behaviour is evident in transactions being settled well above asking prices. For a limited pool of 450 properties sold during the summer, we have calculated the transaction price was 6.5% higher than the asking price, compared with a premium of 2.7% in Q2 2021.
“Hence, we have decided to raise our forecast for residential property index inflation at end-2021 to 10% from 8% previously.
“Unfortunately, there has been only a marginal improvement in housing market conditions for homebuyers. There are currently 13,500 properties listed for sale on MyHome.ie, up only slightly from 12,700 in Q2 2021 and still well down on circa 20,000 pre-pandemic. Although new listings have recovered through 2021, the underlying picture is that vendors have only gradually returned to the market whereas demand has remained robust.
He added that although homebuilding was ahead of expectations, “given population growth is adding 30,000 units at a minimum each year, coupled with circa 100,000 units of latent demand built up over the past decade, it will take some time before homebuilding can start to address the housing shortage”.
Angela Keegan, Managing Director of MyHome.ie, said: “While the annual inflation hike for Q3 is not as high as the previous quarter, it is clear that the property market is still significantly overheated, and that we are some way off towards redressing the imbalance between supply and demand.
“As always, we believe that demand and supply need to be balanced, and as such we are calling for a major increase in construction activity into 2022 and beyond. Now that the pandemic appears to be receding, this is something we can realistically hope for.”
Full details of the report can be found at www.myhome.ie/reports