Donegal house prices rise 4% in one year

written by Rachel McLaughlin January 3, 2019

The average cost of buying a house in Donegal was €143,515 at the end of 2018, according to the latest report by Daft.ie.

House sale prices are up 4.4% from 2017 in Donegal, where a 3-bed semi detached home is now estimated at an average of €90,000.

Nationally, house prices rose on average by €1,000 a month during 2018.

The Connacht/Ulster region had very strong price gains from January to June, before prices fell back in both the third (0.9%) and fourth (0.4%) quarters of 2018.

Unlike other parts of the country, the report found that housing stock on the market is still falling in the Connacht-Ulster regions, with 5,600 homes on the market in December, down 3% year on-year.

Across the region as a whole, prices remain 43% lower than the Celtic Tiger peak a decade ago.

Greater housing supply is relieving the upward pressure on prices, but the type of stock being built is an issue in urban areas, according to report author and Economist Ronan Lyons

Lyons said: “The mismatch between strong demand and weak supply continues – as does the mismatch between what is being built and what is needed.”

Lyons added that there are positive developments for Ireland’s sales segment with the improvement in construction activity.

He said: “More supply should ease the problems in the housing market. But of course not homes are equal. If the country needs urban apartments and is getting mostly rural one-offs, then the extra supply will be of far less benefit than if urban apartments were built.”

 

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