Leitrim house prices jump 5.1pc in three months, REA report

The price of the average second-hand three-bed semi in County Leitrim has increased by 5.1% to €207,500 in the last three months, according to a national survey by Real Estate Alliance.

Across the county, the average time taken to sell a property is currently four weeks, as shown by the Q1 REA Average House Price Index.

Carrick-on-Shannon prices rose by 2.1% this quarter, reaching an average of €240,000.

“The level of under-supply, especially in the two- and three-bed first-home category, has never been so severe,” said Joe Brady of REA Brady in Carrick-on-Shannon. “With very few exceptions, all of the stock we listed between January 2 and February 28 has sold.”

“First-time buyers are now the largest buying group,” he adds, as the local market faces pressure from well-funded buyers from the east of the country, people priced out of the Sligo area, as well as local buyers.

This 5.1% increase in prices puts Leitrim, which is attractive due to its relatively affordable housing and well-connected location, more than halfway toward the predicted 10% increase in 2025 within the first three months of the year.

According to Brady, rapid price increases at the beginning of the year are not uncommon, as spring typically brings the most noticeable hikes. However, he notes that the market this year is particularly surprising.

“The prices we are getting for houses in the first quarter of this year are absolutely astounding us,” he says, recounting the sale of a house in Drumshanbo for around €60,000 more than the original asking price.

Instances like this have occurred since the beginning of the year, as buyers do not see any potential break in the rising prices and have resigned themselves to the fact that securing a property will require bidding and winning before prices climb further.

“We’ve seen 10% [price increases] in the last few years, 12% in some of them… Our numbers will continue on the trajectory they’re on until we start seeing more supply in the market,” he added.

In the Carrigallen area, the rise in the price of three-bedroom houses was even more drastic, with a 9.4% increase to an average price of €175,000.

The survey shows that across the county, 68% of purchasers were first-time buyers, while 33% of sales in the county this quarter were attributed to landlords leaving the market.

Additionally, real estate agents across the county reported that the Building Energy Ratings (BER) of properties saw A-rated homes commanding price increases of 18% compared to comparable C-rated properties.

The REA Average House Price Index focuses on the sale price of Ireland's typical stock home, the three-bed semi, providing an accurate picture of the second-hand property market in towns and cities across the country.

Leitrim is not alone in the uptick in prices, as the actual selling price of a three-bed semi-detached house nationwide rose by 2.5% in the past three months to €338,847, reflecting a 10% overall annual increase.

Three-bed semis in Dublin’s suburbs are now reaching sale agreements in days, as a wave of mortgage-approved buyers shifts their focus from apartments to family homes, the survey found.

Actual selling prices in Dublin city rose by 3% in the last three months, with the average three-bed semi in the capital now selling for €558,250 — a rise of almost €50,000 in the past year.

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