Covid exodus accelerates as house prices rise in country
Workers are still looking to move away from cities despite the easing of Covid restrictions and the return to office life.
the tendency of homebuyers to move to rural areas, which began during the foreclosure, is now snowballing rather than slowing down.
The Independent Irish can now reveal new real estate data that shows a sharp escalation in trips to the country over the past three months,
Real estate prices in regions and cities have increased twice as fast as those in cities.
At the same time, rural and urban real estate agents report that up to half of their buyers are now from a city.
The last Independent Irish/ The Real Estate Alliance (REA) Average House Price Index report shows that the price of an average three-bedroom semi-detached house has increased by € 3,500 per month since the end of June.
The biggest demand-driven price increases have come in suburban counties and major cities, with shoppers continuing to leave the capital in anticipation of remote work. At the same time, price increases in the cities of Dublin, Cork, Limerick and Galway were much smaller, ranging from 1.5 to 2.4%.
“The rural robbery, which began during the lockdown, shows no signs of abating even in the face of a return to work,” REA spokesman Barry McDonald said.
“In my own area, which is Lucan, we see a combination of people selling to move further and buyers moving out of downtown because they feel they don’t need to be at a distance anymore. walk from the office. “
In Stoneybatter, a neighborhood long sought after for young professionals, REA Fitzgerald Chambers reports that 100% of its sales for the period were
conducted on behalf of vendors leaving Dublin.
But the race for bigger houses for less money in very comfortable places has intensified to unprecedented levels in towns like Nenagh, where more intense bidding wars have meant three-way semi-trailers beds are now selling almost a quarter more (23 pc) than they used to be. in June – an increase of € 45,000.
Mr McDonald said: “In Nenagh, REA Eoin Dillon reported that three-bed semi-trailers that previously sold for € 190,000 sold for € 235,000, such is the scarcity of supply. The effect is felt nationwide with counties such as Tipperary (9.2 percent), Donegal (8.4 percent) and Kilkenny (7.3 percent) all seeing strong increases in the third quarter as buyers seek out valuable locations.
In Roscommon, 75% of sales in the past three months were to family homes to people returning from towns in the county.
Agent Michael Boyd in Kilkenny says average prices rose € 17,000 in the third quarter to € 275,000 and properties are now selling in a record two-week window.
Such is the shortage of supply in many cities, at a time when the availability of mortgages has increased, that even a small number of additional buyers is enough to drive up local prices.
Agents say the initial flow of first Covid-19 rental refugees from cities is now also joined by city-born buyers as well as renewed interest from expats eager to return to Ireland after the pandemic .
In the city of Dublin, house prices have risen again substantially, by over € 10,000 in the third quarter, from € 456,667 in June to a current rate of € 467,000.
However, in Clontarf, the average price of a semi-detached house has increased by 6% over the last three months to reach € 715,000. That’s a 19% jump per year according to REA Grimes agents, as interest grows in higher value properties in good locations.
And while the national average time of four weeks it now takes to sell a home is the lowest in decades, agents say the seller’s market is massing that image. “The four-week survey-to-sell average should be even lower because, although the auctions are fast and furious, sellers are not rushing to accept bids,” McDonald said.
“Buyers very quickly bid at their maximum in the rush to get a home – even on homes that may be in poor condition, despite rising construction and renovation costs. With an exceptional shortage of inventory, demand is fueled by an increase in approved buyers in the market.
The Independent Irish/ REA The Average House Price Index is based on actual and up-to-date sales of three-bedroom semi-detached homes, the most common type of home in the country.