New report shows further rise in Cork property prices 

THE average price of a house in Cork City has increased by 5.5%, to €313,000, over the past year, according to the latest Daft.ie House Price Report for the final quarter of 2021.

The figure is up 91% from its lowest point.

House prices in the rest of Co Cork have also risen, with the average now standing at €256,000, an almost 8% increase on this time last year and a 78% increase from its lowest point.

The report, released today, shows that the national average house price is now €290,998, an increase of nearly €50,000 in one year.

A 7.7% rise mirrors the increase from 2019 to 2020.

'Stubbornly high' inflation

Commenting on the figures, the author of the report, Trinity College Dublin economist Ronan Lyons, said that the sales market in Ireland was “nothing but the same old story” this year.

“Inflation remains stubbornly high. This reflects a combination of unusually strong demand and ongoing weak supply,” Mr Lyons said.

“Demand for homes to buy has received an unexpected boost during the pandemic, with prospective buyers able to tap into ‘accidental’ savings, as expenditure fell during the lockdowns.

“While the pandemic has changed some particulars, the general health of the housing market is largely unchanged: It is one characterised by weak supply in the face of strong demand.

“For that reason, additional supply — not just of homes for sale, but also of market and social rental housing — remains key to solving Ireland’s chronic housing shortage.”

Availability 

According to the report, fewer than 11,500 homes were listed for sale in Ireland at the beginning of this month, the lowest total recorded since July 2006.

There were just 3,400 properties on the market in Munster on December 1, down from 4,568 on the same date a year ago.

Though all 54 markets saw inflation in 2021, there was a marked difference in price increases between urban and rural markets.

Outside of the country’s five main cities —Cork, Waterford, Galway, Limerick, and Dublin — the average price of a home is increasing 12.5% year on year, while prices in cities are on average 4% higher.

Counties Galway, Mayo, Wexford, and Leitrim saw the largest price rises over the last year, in each case above 15%.

As many offices remain closed, experts believe the regional increases are due to buyers choosing to move further from work to where homes were cheaper.

For example, transactions of new homes in Dublin City fell by 18%, while those in nearby commuter counties rose 36%.

In Munster, there were 26% more transactions in the first nine months of 2021 than the same period a year earlier.

“Covid-19 has shaken up Ireland’s housing market, that is for sure, but the underlying dynamic of weak supply given strong demand hasn’t gone away,” said Mr Lyons.

“While supply seems set to improve over the coming years, easing pressure in the market, we will no doubt see more signs of a system under pressure before things turn,” she said.