The average house price in Donegal is now €217,000, according to the latest Daft.ie House Price Report.
That is 45% above the level seen at the start of the covid19 pandemic.
Prices in the county in the final three months of 2024 were 5% higher than a year previously, compared to a rise of 7% seen during 2023.
Nationally, house prices rose by an average of 9% this year, according to Ireland’s largest property website.
The typical listed price nationwide in the final quarter of 2024 was €332,109, 1.4% higher than in the third quarter of the year and 30% higher than at the onset of the covid19 pandemic.
The number of second-hand homes available to buy nationwide on December 1st stood at less than 10,500, down 15% year-on-year and the lowest total ever recorded in a series extending back to January 2007.
Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, said 2024 saw the largest increase in listed prices since 2017.
“And, unlike earlier in the 2020s, Dublin is now driving price growth, with its rate of inflation ahead of the other cities,” he said.
“This is, once again, a story of weak supply and strong demand. With incomes and employment growing, demand for owner-occupied housing is likely growing at close to 5% per year.
But while the number of newly-built homes being transacted is increasing, it is growing much more slowly than demand. Further, the increase in new builds has, in recent quarters, been more than offset by a decline in the volume of second-hand homes coming on to the market.
While 2022 saw 63,000 second-hand homes listed for sale, there were just 51,000 put on the market during 2024, similar to levels seen during pandemic lockdowns. The new government may look to intervene in the mortgage market, to improve mobility of those with fixed interest rates. But ultimately, the solution remains boosting the volume of homes being built.”
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