House prices are up in the city, but supply is low
HOUSE prices in Limerick city have increased by 18% in the past year, rising to an average of nearly €150,000.
The latest quarter-on-quarter increase in house prices in Limerick is 3.3%, and represents a rise of 26.3% from the lowest point. By comparison, the average house price in the city in 2006 was around €250,000.
The average house price in the city, according to the latest report from Daft.ie is €149,989, and in county Limerick it’s €151,405, representing a quarter-on-quarter change change of 4.2%, and a yearly increase of 6.6%. The price rise in the county, since the bottom fell out of the market, is 15.1%.
The report states that just under half, or 47%, of all properties in Munster find a buyer within four months, up from 38% 12 months ago.
There were 8,200 properties for sale in Munster in April 2016, the lowest total on the market since March 2007.
There are currently just over 1,600 houses for sale across Limerick on Daft.ie, and the majority of those – some 1,100 – are priced under €250,000.
A further 160 properties in Limerick are priced within the €250,000 to €400,000 bracket, and there are fewer than 50 properties in the entire county on sale for above €400,000.
Property agents Sherry Fitzgerald also said this week that regional centres experienced upward price movement during the quarter, most notably in Cork with price inflation of 2.5% in the quarter, and 8.8% in the 12 months to end March.
The agents also expressed fears that the stock of property available to sell has fallen to the lowest point on record. An analysis of the stock available for sale on the open market in January revealed there were 26,800 units advertised for sale in Ireland in January, which represents 1.4% of the private housing stock.
“Supply is also incredibly low in the other regional centres. The quantity of property available for sale in the cities of Cork and Galway now stands at only 0.7% of their entire private housing stock.
“While Limerick city has just one per cent of its private stock available for sale," stated the property agents.
The Property Price Register, the national database of all house sales since 2010, shows that there have been 294 houses sold in Limerick so far this year.
The figure for the same period in 2015 is 573, however all house sales for this April have yet to be added to the register for 2016.
Twelve of the houses bought in Limerick to date this year have sold in excess of €300,000. Three fetched over €400,000 and two sold for over €700,000.