House prices in Cork City have continued to climb despite the pandemic, with the average price of a house now 11% per cent higher than in the past year.
That’s according to a new report by Daft.ie which has highlighted the impact of supply shortages on rising house prices.
According to the report, across Munster, listed prices dropped by an average of 1% between December and March despite prices increasing in the previous two quarters.
However, prices in Munster are now up 4.1% year-on-year, despite this slight drop in the first quarter of 2021.
In Cork City, the average price now stands at €309,681. This is an increase of 11% when compared to the previous year- one of the highest increases in Munster and above the national average of €275,751.
Prices nationally in the first quarter of 2021 were 7.6% higher than the same quarter a year previously, in line with the increase in late 2020 and well above the average over the period 2018-2020.
On average the cost of properties in Ireland has increased by €20k in one year.— Daft.ie (@daftmedia) March 31, 2021
~Read the full 2021 Q1 House Price Report now~https://t.co/EVE40olPZd#daftreport #property #covid19ireland #LockdownIreland pic.twitter.com/jf6cFmoQLS
Cork City had the highest quarter on quarter change in Munster with the average price increasing by 4.2% while five other areas saw decreases this quarter.
The only areas to see an increase this quarter were Cork City, Waterford City (3%), Waterford County (2.3%) and Limerick City (1.9%).
Cork City had the highest average house price in Munster while Cork County had the third-highest, following after Waterford County at €241,931.
The average house price in Cork County for the first quarter of the year was €233,249 which was an increase of 3.3% when compared to the previous year.
However, this was a decrease of 1.8% when compared to the previous quarter.
The latest Daft Report confirms that Covid-19 has caused a massive shock to supply, but has had far less impact on demand.— Daft.ie (@daftmedia) March 31, 2021
~ Read the full 2021 Q1 House Price Report now ~https://t.co/EVE40o4f7F#lockdownireland #COVID19 #daftreport #property pic.twitter.com/7qcPutEnKz
The author of the report, Ronan Lyons said that when comparing the first quarter of 2021 with the same period a year earlier, prices on average were 7.6% higher nationally.
"Indeed, the counterpart to this report a year ago found that prices had actually fallen 1.7% in the last twelve months - the culmination of over two years of cooling inflation,” he said.
According to the report, supply across Munster was down 40% with just over 3,600 properties on the market in Munster on 1 March, down from 6,066 on the same date a year ago.
Nationally, the number of homes available to buy was down 34%.
"This is an economy short on homes. Dramatically improving the supply of new homes, especially for smaller and more urbanized households, remains the priority,” added Mr Lyons.