Housing supply 'collapsing' across the country, as prices rise to €310,000 in Cork

Daft.ie said housing supply has 'collapsed' around the country. File picture: Eamonn Farrell/RollingNews.ie

House prices in Cork city have jumped 11% in the past year and are now just under €310,000, while supply has "collapsed" across the country.

That is according to Daft.ie’s House Price Report, which found that in the first three months of 2021, homes were 11% higher than a year previously, compared to a fall of 1% seen during the same period in 2020.

The jump compares to a 7.6% rise in the average national listed price.

In the first three months of 2020, the average price of a house was €256,000. This has increased to €276,000 this quarter.

The year-on-year price of houses increased everywhere across the country, except in Galway county, where they fell by 2%.

Munster

While Cork city saw a large increase in house prices, Munster as a whole only saw a 4.1% increase on last year. 

This is despite house prices being slightly down this quarter.

"With price rises in the second half of 2020, prices in Munster are now 4.1% higher than a year previously, despite a 1% drop in prices in Q1 of 2021," Daft said.

The cheapest averagely-priced house in Munster can be found in Tipperary, at €188,601, which represents an increase of 4.9% on last year.

Housing supply continues to be a major issue, with Daft.ie saying that it has “collapsed” across the country.

While house prices increased, supply fell by 34%.

Impact of Covid-19

The report found the impact of Covid-19 on the sale market was "a massive shock to supply”.

In Munster, supply has fallen by 40%. The survey found there were just over 3,600 properties on the market in Munster on March 1, down from 6,066 on the same date a year ago.

“The total number of homes listed for sale in the 12 months to February nationwide was just 45,700, down a third on the previous 12-month period,” said the report’s author Ronan Lyons.

“This sudden collapse in supply – at a time when demand has held up remarkably well – has converted into sharp upward pressure on prices."

The substantial volume of new homes needed each year will remain, Mr Lyons said.