Houses selling in just three weeks as post-lockdown demand floods market

The return of in-person viewing and a lack of supply is causing a significant spike in prices in many parts of the country, according to the REA survey, which focuses on three-bed semi-detached homes. 

House prices in Limerick have surged by more than 10% in just three months, while the time taken to sell a new home in Waterford has halved in the same period.

New data issued by the Real Estate Alliance (REA) has shown startling increases in almost all markets, echoing the Celtic Tiger era in many cities and counties.

Its latest survey shows a rise of 4.1% over three months in the second quarter of 2021 nationally, compared to an annual increase of 1.4% in the whole of 2020.

Return of physical viewings

The REA said the increases are fuelled by pent-up demand and the return of physical viewings post-lockdown, combined with scarcity of supply and some of the shortest selling times in recent history.

Spokesman Barry McDonald said: "While the market operated steadily through lockdown, the ability to view homes and the reopening of estate agents has seen a further flood of mortgage-approved buyers emerge.

"Many people were not comfortable with the idea of buying houses without the traditional viewing, and they have now joined the ranks of those chasing a limited supply.

Buyers are motivated and have financial firepower, and our agents are seeing far more multiple bidders forcing prices up.

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With multiple buyers now competing for a small number of properties, the average three-bed semi now takes an average of just four weeks to reach sale agreed status, compared to 10 weeks this time last year.

Commuter counties

Commuter counties saw the largest increases in the second quarter, as buyers continue to move out further from cities in preparation for long-term remote working situations.

Three-bed semis in commuter counties rose 4.33% by more than €11,000 in the past three months to an average of €270,111.

The average home is selling in just three weeks, down from a high of 11 weeks a year ago.

With many buyers using lockdown to save for their deposit, the large number of house-hunters battling for low levels of stock has seen sales agreed quicker than ever before.

Cork, Limerick, Galway and Waterford cities shared a combined increase of 3.5% in the past 12 weeks, with prices rising by €10,000 to an average of €275,000.

Limerick and Waterford

While Cork and Galway saw steady rises, the post-lockdown effect was more pronounced in Limerick and Waterford.

In Limerick City, prices rose by €20,000 over the last three months, up 9.3% to €235,000, with a large cohort of first-time buyers continuously bidding on a record low supply, according to the REA.

This is having a knock-on effect in surrounding areas, with prices in Co Limerick increasing by 10% in the same period, up by €18,000 to €196,000.

Waterford City saw prices rise by 4.3% or €10,000, to €240,000, with the time taken to sell halving in three months to four weeks.

Increases were less pronounced in Cork City, up 1.5% to €330,000, and Galway City, up 1% to €295,000.

The REA Average House Price Index concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi.

The average price of a three-bed semi-detached house countrywide rose by €10,000 over the past three months to €253,685, representing an annual increase of 8%.