A new report has predicted that average house prices in Cork County are expected to remain on an upward trajectory over the coming year, driven by a combination of strong demand and low supply.
hat’s according to the latest report from the Real Estate Alliance (REA), which has predicted that the price of an average three-bed semi in the county will increase by three per cent during 2021.
Issued on a quarterly basis, the Real Estate Alliance (REA) house price survey focusses on the sales of a typical Irish stock home, the three-bed semi, giving a regular, up-to-date picture of the second-hand property market across the country.
The latest REA survey for the final quarter of last year showed that average Cork house prices increased by 0.6 per cent between September and December, roughly equivalent of €1,000 per property.
As 2021 drew to a close, buyers could expect to pay €179,750 for a three-bed semi in Cork, a year-on-year increase of 2.1 per cent on the December average of €176,000.
As throughout 2020, demand from potential buyers remained strong, resulting in houses taking eight weeks to sell, a week quicker than at the end of quarter three.
A snapshot of the housing market in North Cork revealed that, in a similar vein to the rest of the county, house prices rose steadily throughout 2020 from an average of €154,000 in December 2019. Over the ensuing 12 months, prices increased by 2.3 per cent to €157,500, with an average sale time of seven weeks.
Nationally, average house prices rose by almost 1.5 per cent to €239,194 over the final quarter of 2020, fuelled by what the REA said was a “combination of record mortgage approvals and an unprecedented lack of supply”.
The REA anticipates that a wave of city workers moving home to their native counties is expected to pour further fuel on the current trend of house-price increases as 2021 progresses.
The results of another survey undertaken by the alliance of its members across the country, in conjunction with Independent.ie, has predicted that, nationally, house prices will increase by 4.4 per cent this year.
According to REA spokesperson Barry McDonald, the survey found that alliance agents felt current unsatisfied demand levels, especially for properties with home-working potential, would negate Brexit or COVID influences on the market in the short term.
“Quality broadband and remote-working possibilities have replaced commuting strategy and location as the drivers of an extraordinary market which is outperforming all expectations – despite the COVID crisis,” said REA spokesperson Barry McDonald.
“Nationwide we are seeing the same phenomenon of people returning to their roots to live – safe in the knowledge that they can work from home.”
He said that, this year, lending restrictions (Central Bank rules) and Brexit uncertainty will prevent runaway growth, but a shortage of suitable properties would continue to put upward pressure on prices over the coming 12 months: “In 2021, the reality facing buyers is that the market remains unbalanced as demand races ahead of supply.”