Average house prices in westmeath rise 204 in 2015 survey

The price of an average three bedroom semi detached house in Westmeath has risen by 2.04% to €125,000 in the second quarter of 2015, according to a national survey carried out by Real Estate Alliance.

The REA Average House Price Index 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.

According the REA Hynes in Athlone, the market is going in the right direction and sentiment is noticeably improving. There is also an increase in the volume of transactions and the time for closing a sale is reducing.

The average semi detached house nationally now costs €186,968, the Q2 REA Average House Price Index has found – a slight fall on the Q1 figure of €187,153.

However, the price of an average three-bed semi in Dublin city has fallen by over €19,000 in the past three months.

The price of an average three-bed semi in Dublin city has fallen by -5.02% from €381,667 to €362,500 since the end of March as the new rules on mortgage lending begin to take effect on the market.

The new rules on mortgage lending for houses above €220,000 have contributed to an already apparent softening in the Dublin market, according to REA.

Some areas in the higher end of the south Dublin city market have seen selling prices fall by up to €35,000 (or -7%) since Q1, where the average three-bed semi would sell in the €400,000 range.

However, the market remains relatively stable in areas where prices are closer to the €220,000 threshold.

"Our survey measures house sales right up the end of June and what we are seeing is the first genuine effects of the mortgage deposit rules on the market," said REA CEO Philip Farrell.

"The rules were brought in to take the heat out of the market, and they have done that, but combined with rising rents and the ending of the Capital Gains Tax exemption, they have had a supressing effect.

"What we are seeing on the ground is a slowdown in interest in the traditional professional properties, as couples find that raising an €80,000 deposit for a €400,000 home is simply beyond their means.

“The average three-bed semi price in the commuter counties and other major cities has continued to rise by 1.23% since March and now stands at €202,882 as buyers seek out affordable commutable housing.

“We are also seeing a continued improvement in what we term tier three, the rest of the country where prices have risen by 1.32% in Q2 to €119,828.”

Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 50 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.