Property prices in Donegal have risen by more than 10% per cent in one year, a new report has revealed.
The median asking price of a 3-bed semi in Donegal is now €150,000 according to the latest quarterly MyHome.ie Property Report.
The prices of four-bedroom, semi-detached houses are down by a modest -2.2% this year to €195,000.
MyHome.ie has identified a continued slowdown in asking price inflation in the first quarter of 2023. However, the market is constrained by poor supply and impacted by a range of both positive and negative factors.
The Q1 2023 report, in association with Davy, found that annual asking price inflation slowed to 3.2% nationwide. Homes are now being sold for just 1% over asking prices, versus 6% at this time last year.
The author of the report, Conall MacCoille, Chief Economist at Davy, said the data suggested that frothy pandemic-era valuations were now cooling off. “This quarter’s MyHome report shows another 0.3% fall in asking prices in Q1 2023. Prices fell especially sharply – by 0.8% – in Dublin but rose marginally by 0.2% in the rest of Ireland. We expect the 0.6% decline in the CSO’s RPPI measure of transaction prices in January will continue in the coming months.”
Joanne Geary, Managing Director of MyHome.ie, said that housing supply was still the elephant in the room. “Unfortunately, stock levels are still a major concern. In an ideal scenario, we need approximately 50,000 new homes built every year, and we are running far short of that target at present.
“We know from our recent consumer sentiment survey that prospective homebuyers are feeling the pinch from the energy and cost of living crises, so now more than ever we need construction activity to ramp up to alleviate the build-up in pressure.”
