House prices in Donegal have skyrocketed by 21.6 percent in the last 12 months, according to the latest myhome.ie house price survey.
The average 3 bed semi-detached home in County Donegal now costs €152,000 – with the 21.6% price rise the highest rate in the country.
The average price of a home here is the second lowest of any county in the Republic, but prices have continued to rise consistently as inflation goes up, pressure continues nationwide on the housing market, and the mica crisis puts extra pressure on home availability in the North West.
Nationally prices have increased by 7.8% year-on-year as the demand for housing continues to outweigh supply and the number of houses being built.
That rate is slowing however, with the myhome.ie report stating that the property market here is beginning to cool off.
The author of the report, Conall MacCoille, Chief Economist at Davy, said that the latest figures did not necessarily mean we would see persistent price falls:
“Asking prices are typically weak as the busy summer trading season peters out and fell in both Q3 2018 and Q3 2019. After the disruption of the Covid-19 pandemic, the usual seasonal pattern has re-emerged.”
He said that there was mixed news on supply. “On one hand, new listings for sale are strong, suggesting the market is merely making up for lost time following delayed transactional activity in 2020 and 2021. However, it is most unwelcome to see construction activity curtailed by supply chain issues and rising input costs.”
He said rising interest rates will lead to slower price growth, but that pent-up demand in the market remained strong. “In July, the average mortgage approval was €288,300 – up 8% on the year. In the year to June, 16% of mortgage approvals failed to translate into a drawdown, indicative of frustrated buyers.
