Property prices in Donegal have decreased by €5,000 during the quarter, according to the latest MyHome.ie Property Report in association with Davy.
The report for Q4 2020 shows that the median asking price for a property in the county is now €160,000. This means prices are up by €3,000 compared to this time last year.
Continuing with this trend, asking prices for a 3-bed semi-detached house in the county fell by €1,500 over the quarter to €125,000. However, this represents an increase of €5,000 compared to Q4 2019.
Meanwhile, the asking price for a 4-bed semi-detached house in Donegal has remained steady at €145,000 over the quarter. This represents a decrease of €10,000 compared with this time last year.
The number of properties for sale in Donegal on MyHome.ie fell 7% in the last quarter and by 2% over the year.
The average time for a property to go sale agreed in the county after being placed up for sale now stands at almost eight and a half months.
The author of the report, Conall MacCoille, chief economist at Davy, said that house price increases were now likely in 2021.
“This quarter’s MyHome report points to an acceleration in annual asking price inflation to 6%, the fastest pace in almost three years.
"This pressure has not yet turned up in transaction prices, although the Central Statistics Office (CSO) Residential Property Price Index (RPPI) rose by 0.5% in October, the sharpest monthly increase in over one year.
"It is probably only a matter of time before the official measure of house price inflation accelerates.
“As we head into 2021, homebuyers have saved additional funds to purchase homes, with sentiment helped by the likely recovery in the economy as vaccines are disbursed.
"Given that homebuilding will remain impaired, with banks seeking lending opportunities, too much cash is chasing too few homes – which can only push prices higher.”
Angela Keegan, managing director of MyHome.ie, said the property market mirrors the overall economy, and they are in a much better place now than we may have expected to be earlier in the year when the virus emerged.
"Government Covid-19 supports, increased mortgage lending, and the concentration of job losses among mostly lower-paid workers have ensured the property market has remained buoyant, while the ongoing issue of supply has exacerbated demand leading to a rise in house price inflation,” she said.
Full details of the report can be found at www.myhome.ie/report
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