According to the Real Estate Alliance (REA) Average House Price Index, there has been a noticeable increase in the average price of three-bedroom semi-detached homes across various counties, including County Longford where prices have risen by 4.4% in just three months. This trend is largely driven by first-time buyers who account for a substantial portion of the purchases, alongside an interesting shift of buyers coming from outside the county. The allure of counties like Longford lies in their accessibility and proximity to major cities like Dublin, which is particularly appealing for individuals engaged in hybrid working models. However, the spike in demand against a backdrop of limited supply continues to fuel price increases.
The scarcity of new homes on the market poses a challenge, with projections suggesting it might be until 2025 before we see a significant influx of new properties available for sale. Nationally, the time taken to reach 'sale agreed' remains steady at about five weeks, underscoring the brisk pace at which properties are being snapped up due to historically low supply levels. This dynamic market situation is happening despite high property values and interest rates, indicating strong underlying demand. Contributing to this trend is the introduction of incentives such as the Vacant Property Refurbishment Grant, which has rejuvenated interest in homes requiring refurbishment. This scheme allows buyers to avail themselves of grants for refurbishments up to €50,000 or even €70,000 if structural issues are present.
Such initiatives are opening up opportunities for properties that were previously hard to sell and expanding the market beyond traditional builders and developers. The profile of buyers shows a predominance of mortgage-approved first-time buyers driving sales, reflecting a broader national trend where affordability concerns are pushing many towards second-hand homes as viable alternatives. Cities outside Dublin are witnessing some of the highest price rises in this quarter's survey – indicating a broad-based appreciation across different regions. This scenario underscores an increasingly competitive market where supply constraints continue to push prices upward. As we move forward into 2024 and beyond, it's clear that both government interventions and market dynamics will play crucial roles in shaping the landscape of Ireland's housing sector.
With interest rates potentially peaking and new policies coming into effect, stakeholders will be keenly watching how these factors influence affordability and access to housing.
