REA note price increases in Waterford market

The price of the average three-bed semi detached house in Waterford has risen by 2.48% to €155,000 in the last three months, a nationwide property survey has found.
The REA Average House Price Survey concentrates on the sale price of Ireland’s typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide to the end of the selling season in December.
REA agents in Waterford are predicting that prices will rise 10% in 2016, after a 10.71% rise in the price of the average three bed semi in 2015.
“There was a noticeable increase in activity particularly in the three-bed starter home market over the last quarter,” said Eamonn Spratt from REA Spratt in Dungarvan.
“This is a combination of lack of supply and prospective purchasers reading positive commentary in national media. We have not noticed a significant improvement in bank lending, in fact the complexity of drawing down a mortgage is becoming more challenging.”

The lack of suitable supply is the biggest influence on the property market nationwide, according to REA Chairman Michael O’Connor.
“What we have seen in the last three months are prices only increasing in areas that are offering people the accommodation that they require,” he said.
“People may want to buy housing, but if suitable properties are not available, they will not buy.
“We are seeing a lack of supply of good quality three-bed semi-detached houses across the country, and a desperate need for new developments.
“In many areas, the properties available in the sub-€220,000 level are either apartments, houses that are too small or need too much investment to bring them up to standard.
“The market is still stalled at the second–time buyer level, due to the restrictive nature of the Central Bank’s deposit lending rules.
“Many potential second-time buyers now only have the option of renting bigger houses and letting out their own, as they are not able to afford the 20% deposit to be able to purchase.
“There are very few suitable houses to buy at the lower end of the market for first-time buyers because potential second-time buyers have no way to trade upwards.
“We are now seeing an increase in values in our largest cities outside Dublin a year later, and one-by-one our smaller towns have started to see increases. For the first time we are seeing developers trying to buy land in the anticipation of building as it is now economical to build in some of our larger cities.”

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