Offaly homes 'unaffordable' for first-time buyers
24th June 2019
HOMES in Offaly are now unaffordable for first-time buyers on an average income, according to a new survey by EY-DKM Economic Advisory..
The report finds that it takes first-time buyers on an average income in the county 4.4 years to save for a deposit.
It highlights the worrying trend that the lack of affordable houses for first time buyers has moved beyond urban centres such as Dublin and Cork, and has now become an issue in many less urban areas nationwide.
The price of the average three-bed semi in Offaly has remained unchanged in the past year, according to a separate national survey carried out by Real Estate Alliance.
The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the second-hand property market in towns and cities countrywide to the close of last week.
“We find prices have reached a level at the moment, with slower selling times. We have not seen any increase over the last few months,” said Aidan Heffernan of REA Heffernan in Tullamore.
Tullamore property prices were static this quarter and the average three-bed semi is currently on the market at €180,000, with the time taken to sell increased from five weeks to six.
The average semi-detached house nationally now costs €236,028, the Q2 REA Average House Price Survey has found – a rise of 0.05% on the Q1 2019 figure of €235,898.
Overall, the average house price across the country rose by 1.54% over the past year – a decrease on the 2.96% recorded to March and an indication that the market is continuing to steady after an 8% overall annual rise to June 2018.
Dublin City second hand property prices decreased by an average of €4,500 in the past three months, registering a second consecutive quarter fall (-1%) since the end of March, and -2.2% compared to June 2018.
The price of the average three-bed semi-detached house in the capital’s postcode districts now stands at €433,000.
“Wherever we have new homes on the market, they are definitely having an effect on prices in the existing market as they operate in their own price structure, with buyers prepared to pay a premium for A-rated properties,” said REA spokesperson Barry McDonald.
Prices rallied slightly by 0.1% in the commuter counties in the last three months, with the average house now selling for €249,167 – an annual rise of 1.17%.
The increased availability of new homes has had a suppressing effect on prices in some commuter areas such as Kildare, North Wicklow and Meath.
Prices in the country’s major cities outside Dublin were relatively static with agents in Galway and Limerick reporting no change due to an increase in supply and new homes developments.
The highest annual increases (5.3%) were once again seen in the rest of the country’s towns which rose in selling price by an average of €8,000 in the past year and 1.08% in the past three months to €161,138.