A supply drought in Dublin has reignited the commuter property market as buyers battle to secure affordable family homes, the Q3 REA Average House Price Index has found.
Frustration in the capital has led to the return of the previously unheated commuter market, which has risen by 2.9pc over the past three months to an average of €336,944.
And further afield, large towns such as Ennis, Tralee, Tullamore and Athlone have experienced previously unseen average increases of €20,000 in the past three months.
The REA Average House Price Index concentrates on the sale price of Ireland’s typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.
The actual selling price of a three-bed, semi-detached house across the country rose by 2.7pc in the past three months to €323,741.
Time taken to reach sale agreed nationally has dropped to four weeks as low supply continues to drive sales.
Actual selling prices in Dublin city rose by 1.3pc in the last three months, and the average three-bed semi in the capital is now selling at €532,333 – an annual increase of 7.4pc.
The number of sales in the capital due to landlords leaving the market has risen six points to 24pc in the past year, the Index revealed, but some areas are reporting a figure of over 50pc.
“Lack of stock in Dublin has accelerated bidding in the commuter belt, with a number of counties such as Meath, Louth, Carlow and Kildare experiencing their largest quarterly rises of recent times,” said REA spokesperson Seamus Carthy.
“There has been a drought of properties on the market in Dublin over the summer – the lowest seen in years according to our agent Anthony McGee of REA McGee.
“Average selling time in the capital has fallen from five to four weeks, but in many cases it is as low as two.
“A lot of stock in some areas is ex-rental and landlords are keen to close as soon as the bidding hits their expected figures – so while properties are moving, we are not necessarily seeing the rises that you might expect.
“While there is activity on every property, it is not as intense as people may believe and we feel that moderate increases in supply would take the heat out of the current market.
“One area where we are seeing improvement is in the turnaround time for probate, which has been has previously been frustrating for potential buyers.”
Prices in the major cities outside the capital rose by an average of 2.25pc to €341,250 in the last three months –an annual rate of increase of 7.5pc.
Homes in the country’s large towns continue to show the biggest growth nationwide, up 10pc on last September and 3.6pc this quarter to an average of €243,241.
Tralee has shown the largest annual rise in the country, with three-bed semi prices rising by 22pc in the past 12 months – and €20,000 in the past quarter, and touching the €300,000 mark for the first time.