Donegal house prices increase 3.9pc in three months

The price of the average second-hand three-bed semi in Donegal has increased to €197,500, up 3.9pc from €190,000 in the last three months, according to a national survey by Real Estate Alliance.

Across the county, the average time taken to sell is currently four weeks, the Q2 REA Average House Price Index shows.

Average Bundoran prices rose 2.5pc this quarter to an average of €205,000, while prices in Milford this period were up 5.6pc at €190,000.

“Prices still continue to rise, as demand continues to outstrip supply,” said Paul McElhinney of REA McElhinney, Milford. 

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“The average house price remains relatively low but new build properties are slowly coming to market - and they are at a higher level, which is starting to increase the average price point.”

The survey shows that across the county, 27pc of purchasers were first-time buyers, while a total of 13pc of sales in the county this quarter were attributed to landlords leaving the market.

Additionally, agents across the county reported that the BER ratings of properties saw A-rated properties command 30pc price increases in comparison to comparable C-rated properties. 

The REA Average House Price Index concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.

The actual selling price of a three-bed, semi-detached house across the country rose by 2.7pc in the past three months to €347,912, and 10.3pc overall annually.

While actual selling prices in Dublin city rose by 2.6pc in the last three months, REA agents have noticed fewer first-time buyers at recent viewings.

The average three-bed semi in the capital is now selling at €572,693 – a 9pc annual rise of almost €50,000. The country’s biggest rises this quarter came in the commuter belt, as selling prices increased by 3.1pc to €361,319.

The commuter belt increases were particularly felt in Kildare, where Newbridge, Naas, Maynooth and Celbridge all experienced three-monthly price rises of 5pc. Homes in Cork city hit €400,000 for the first time as prices in the major cities outside the capital rose by an average of 1.5pc to €360,605 in the last three months – an annual rate of increase of 8pc.

The REA survey found that properties with a BER rating of A commanded an average 16pc premium over C-rated stock.