House prices in Waterford are set to rise again, with the cost of an average three-bed semi in both the city and county expected to rise by 5% in the next 12 months, according to a survey by Real Estate Alliance.
Three-bed semi-detached homes in the city now cost an average of €250,000, up 9% on the December 2020 average of €230,000, the REA Average House Price Index shows.
While prices across the county have risen to an average of €205,000, an annual increase of 12% from €182,500.
The survey focused on the actual sale price of Ireland's typical stock home, the three-bed semi, to give a current picture of the second-hand property market countrywide.
Landlords exiting the market have accounted for almost one in four home sales over the past three months, the data shows.
Eamonn Spratt of REA Spratt, Dungarvan, said that house prices continue to be influenced by low levels of new stock coming to market:
There is significant evidence of landlords vacating the rental market by reason of two influencing factors. Firstly, prices are now at a high level in contrast to previous years and landlords’ properties are now potentially clear of any loans. In addition, the changing legislation associated with the residential rental market is becoming a deterrent to the non-institutional landlords
Des O’Shea of REA O’Shea O’Toole, Waterford City said that scarcity of supply is resulting in competitive bidding and a shorter selling period, adding “the purchasers we are seeing are mostly owner occupier.”
House prices nationally
Average house prices rose by 2.24% nationally in the last three months of 2021. This was half the rise experienced between June and September, as demand eased and the market calmed.
The price of a three-bedroomed semi-detached house across the country rose by €5,900 over the past three months to €269,963 – representing an annual increase of 13%.
Selling prices rose in commuter areas (3.34%) and the country’s large towns (2.57%) as buyers continue to move out further from the capital in anticipation of long-term remote and hybrid working situations.
In Dublin city, house prices rose by over €4,000 in Q4, compared to more than €10,000 in Q3, increasing from €467,000 in September to a present rate of €471,667.
Cork, Limerick, Galway and Waterford cities shared a combined increase of 0.8% in house prices in the past 12 weeks with the average three bed semi now costing €283,000.
While Cork (€335,000), Galway (€302,000) and Waterford (€250,000) were relatively static, prices in Limerick rose by 2.1% to €245,000.
