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24/10/2021

Bleak picture for homebuyers in Kilkenny as house prices continue to soar

Several surveys show a market 'starved of supply, with prices being bid-up aggressively by homebuyers'

KILKENNY

The cost of buying a house continues to rise in Kilkenny

The cost of buying a house continues to soar in Kilkenny, with a number of reports published today showing no abatement to the trend.

Property prices in Kilkenny have risen by €2,500 during the last quarter, according to the latest MyHome.ie Property Report. 

According to a Daft.ie report, prices in Kilkenny in the third quarter of 2021 were 11% higher than a year previously, compared to a rise of 9% seen a year ago. 

Meanwhile, according to a national survey by Real Estate Alliance, the price of the average second-hand three-bed semi in County Kilkenny has increased by 5% to €232,500 in the last three months,

Myhome.ie
The myhome.ie report for Q3 2021, in association with Davy,  shows that the median asking price for a property in the county has risen to €222,500. This is consistent with the overall national picture, which saw a quarterly increase in asking prices of 2%. 

However, asking prices for a three-bed semi-detached house in the county fell by €2,500 over the quarter to €185,000. This means that prices in the segment have risen by €5,000 compared to this time last year. 

Meanwhile, the asking price for a four-bed semi-detached house in Kilkenny fell by €12,500 over the quarter to €235,000. This represents a year-on-year decrease of €15,000 in the segment. 

The number of properties for sale in Kilkenny on MyHome.ie rose by 22.1% in the last quarter. 

The average time for a property to go sale agreed in the county after being placed up for sale now stands at just over five and a half months. 

National picture 
The author of the report, Conall MacCoille, Chief Economist at Davy, said that the findings of the report would provide little respite for homebuyers.  

“The market is still starved of supply, with prices being bid-up aggressively by homebuyers. This behaviour is evident in transactions being settled well above asking prices. For a limited pool of 450 properties sold during the summer, we have calculated the transaction price was 6.5% higher than the asking price, compared with a premium of 2.7% in Q2 2021. 

“Hence, we have decided to raise our forecast for residential property index inflation at end-2021 to 10% from 8% previously. 

“Unfortunately, there has been only a marginal improvement in housing market conditions for homebuyers. There are currently 13,500 properties listed for sale on MyHome.ie, up only slightly from 12,700 in Q2 2021 and still well down on circa 20,000 pre-pandemic. Although new listings have recovered through 2021, the underlying picture is that vendors have only gradually returned to the market whereas demand has remained robust.  

Angela Keegan, Managing Director of MyHome.ie, said: “While the annual inflation hike for Q3 is not as high as the previous quarter, it is clear that the property market is still significantly overheated, and that we are some way off towards redressing the imbalance between supply and demand. 

“As always, we believe that demand and supply need to be balanced, and as such we are calling for a major increase in construction activity into 2022 and beyond. Now that the pandemic appears to be receding, this is something we can realistically hope for.” 

Full details of the report can be found at www.myhome.ie/reports.

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