Remote working sees house hunters returning to native counties

REA spokesperson Barry McDonald said there has been a huge shift in market behaviour.

House prices in regional towns have risen by almost 1% in 12 weeks compared to 0.5% in bigger towns and cities.

It indicates that house hunters are returning to their native counties as they take advantage of working from home.

Despite fears that Covid-19 would result in a downturn in the market, the REA Average House Price Index shows the price of a three-bedroomed semi-detached house across the country rose by 0.6% over the past three months to €236,046, an annual increase of 0.4%.

REA spokesperson Barry McDonald said there has been a huge shift in market behaviour.

“All of the buyers are families who are either moving home or have decided to move out of bigger urban locations in search of more space and a better quality of life.

“It is evident that nationwide, people have really used the lockdown to take stock of their lives, experience remote working and in some cases, relocate in fairly drastic ways.” 

The time taken to sell a house has fallen dramatically over the past three months.

According to the REA, the average three-bedroom semi-detached house is now reaching sale agreed after seven weeks across the country - a significant fall from the ten-week average in June.

Mr McDonald said this fall is driven by a combination of low supply and highly-motivated buyers.

“Buyers are more focused, with a higher percentage of bids being made, and in many cases are looking to secure homes before their current mortgage approval runs out.

“They are competing with a definite shortage of stock nationwide, which is concerning our agents.

"This supply deficit is keeping prices buoyant and applying upward pressure in some cases.

“It is clear that broadband is absolutely key for buyers and good amenities and space have become more important than transport links and commuting time.

“Properties with home office potential are being snapped up around the country, with one of our agents in Roscommon REA Seamus Carthy having 43 potential buyers on a waiting list for homes with garden space priced between €350,000 and €500,000."

House prices in Dublin have risen with the biggest increases in South County Dublin where the price of a three-bedroom semi-detached house rose by 0.8% to €416,666.

Commuter counties fared less well than Dublin, with three-bed semis averaging €247,667 – a 0.3% rise on the Q2 figure of €246,944.

The lowest rise was felt in Ireland’s secondary cities – Cork, Limerick and Waterford – which experienced a selling price change of 0.15% to an average of €256,250.

Three-bed semis remained static in Cork, Limerick and Waterford cities.