Annual second-hand home prices up by 5.5%
June 27, 2024
New figures from estate agent Sherry FitzGerald show that the average value of second-hand homes in Ireland saw a 1.8% increase in the second quarter of 2023.
Sherry FitzGerald said this contributed to an overall 5.5% increase over the past 12 months, an increase from the 3.4% annual growth rate recorded the same time last year.
In Dublin, average values grew by 1.7% during the quarter. The estate agents noted that the annual growth rate in Dublin has risen to 5%, up from a growth rate of 2.4% growth recorded in the previous 12 month period.
Outside of Dublin, the trend of higher price inflation continues, but the gap is narrowing. Average values in these areas grew by 1.9% in the quarter, leading to an annual growth of 6%. This compared to the 4.6% annual growth rate recorded in June 2022.
Breaking down the country’s regions, Sherry FitzGerald said the Mid-West and West regions experienced the strongest annual price growth, with increases of 7.9% and 7.4% respectively.
The Border and Midlands regions also recorded strong price growth, with increases of 7.1% and 7% respectively, while the South-East region saw the lowest annual growth rate at 4.7%.
Today’s figures from Sherry FitzGerald also reveal a decline in sales volumes in the first quarter of 2024 on an annual basis.
Housing transactions – as per stamp duty executions – totalled 9,450 in the first quarter of this year, a fall of 10.8% compared to the same quarter in 2023.
In the second-hand market, about 7,880 units were sold, a 10.4% decrease compared to the opening quarter of 2023.
Sherry FitzGerald said the decline is “unsurprising” given the shortage of second-hand homes available for sale over the past year.
It noted that in January 2024, just 11,050 second-hand homes were advertised for sale, marking a 27% decline from the previous year.
Rural and regional areas have been particularly affected, with Sligo, Laois and Roscommon recording declines in second-hand transaction activity of 31.2%, 28.9% and 26% respectively.
Activity in the new homes market also slowed in the first three months of 2024, recording a 13% decrease compared to 2023.
“Given the challenges faced by the sector over the past 18 months, such as construction cost inflation and interest rate increases, this decline is not surprising,” Sherry FitzGerald said.
“However, with inflation falling and a recent interest rate cut, it is likely that we will see an uptick in transaction activity in the new homes sector through the rest of the year,” the estate agents added.
Today’s report also shows that landlords continued to exit the market at an “unsustainable” pace.
An analysis of Sherry FitzGerald’s sales reveals that only 12% of purchasers of second-hand homes were investors, while 36% of vendors were investors selling their properties.
Marian Finnegan, Managing Directo of Sherry FitzGerald, said today’s latest figures demonstrate a notable increase in the value of second-hand homes across Ireland, with strong growth in both urban and rural areas.
“However, the market faces significant challenges, particularly with the decline in transaction activity as a result of persistent supply shortages,” Ms Finnegan said.
“The data for the first six months underscores the ongoing supply challenges that are significantly affecting transaction volumes and price inflation. Notably, the rental market issues are intensifying, making it absolutely essential for these to be addressed adequately in Budget 2025,” she added.
Article Source – Annual second-hand home prices up by 5.5% – RTE
