IPAV has published its latest Residential Property Price Barometer
THERE was double-digit growth in the price of homes in Limerick during the first half of 2021, new figures from The Institute of Professional Auctioneers and Valuers show.
IPAV’s latest Residential Property Price Barometer charting house prices achieved for three and four-bedroom semi-detached homes and two-bedroom apartments in the first half of 2021 shows an acceleration in house price increases over the previous six months.
The study has found double-digit growth for three-bedroom homes in Limerick and Waterford. Close behind are Tipperary, Meath, Louth and Cavan with nine plus per cent growth, followed in the eight plus per cent range by County Dublin, Carlow, Dublin 15, Dublin 7 and Kildare.
In Limerick, three bedroom homes increased by 10.06% to €246,250 while the price of four-bedroom homes showed the fastest inflation rate of 10.29% with homes selling for an average of €281,250.
Limerick reflecting, its overall performance, also featured strongly in the apartment market with the second-highest growth rate of 8.93% bringing the average price to €152,500.
Some of the area specific increases are accounted for by new blended working opportunities where people don’t have to operate from formal office settings on a full-time basis, according to IPAV’s Chief Executive Pat Davitt.
“While that is an influential factor, the main driver of increasing prices is the lack of supply of homes to meet current and pent-up demand. And that is why predictions by economists and others of house price drops during the pandemic have not materialised, forecasts IPAV called into question at the time,” he said.
Mr Davitt said his organisation welcomes the Government’s new Housing for All plan with a commitment to invest €4 billion per year to build 300,000 homes over the next nine years.
“While the nuts and bolts of how precisely the plan is going to achieve that target remains to be seen, it is in the interest of society as a whole that the plan works because continuing house price increases at the level we are currently seeing would not be sustainable over the longer term but will not abate either until more stock comes on stream to meet supply," he said.
Mr Davitt added the price of a home is critical to the future financial security and wealth of our younger population. “While still ahead of the euro area norm we currently have historically low interest rates. The recent introduction of 20 and 30-year fixed interest rate mortgages is a first for Ireland and enables purchasers to have security knowing exactly what their future financial outlay will be. This is a major contrast with the past where interest rates were frequently subject to increases, sometimes significant increases.”
The IPAV Residential Property Price Barometer charts house prices achieved by auctioneers, as opposed to asking prices.
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