Donegal House Price Survey September 2021

The price of the average second-hand three-bed semi in County Donegal has risen by 8.4% to €122,500 in the last three months, according to a national survey by Real Estate Alliance.

Homes in the county are reaching sale agreed in five weeks, the Q3 REA Average House Price Index shows.

Average Bundoran prices rose 7.8% to €125,000 this quarter, while prices in Milford rose 9.1% to €120,000.

“We are seeing continued strong demand from Northern Ireland for part-time and holiday homes, as well as interest from the local market,” said Roger McCarrick of REA McCarrick and Sons, Bundoran.

The average taken to sell remained unchanged at four weeks in Bundoran and six weeks in Milford during this period.

“Overall, the market is still very strong and we are seeing good demand for properties across Donegal,” said Paul McElhinney of REA McElhinney, Milford.

“Supply is limited and there are no new builds, however there is second-hand stock.

“Demand is mainly coming from the local market ­— people with local connections who have lived in other cities and countries are buying the larger properties.

“There is also demand from investors who are buying up properties for the rental market.”

Average house prices nationally have risen by €3,500 per month since the end of June, with selling prices in commuter areas and small towns increasing by over double the growth experienced in the major cities.

The survey concentrates on the actual 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 price of a three-bedroomed semi-detached house across the country rose by 4.1% over the past three months to €264,056 – representing an annual increase of 12%.

The biggest rises in Q3 came in commuter counties (4.6%) and the country’s large towns (4.9%) as buyers continue to move out further from the capital in anticipation of long-term remote and hybrid working situations.

They are being joined by a surge of interest from ex-pats, anxious to return to Ireland after the pandemic, with more set to return when family homes become available.

The rural and commuter area increases are double those being experienced in Ireland’s major cities, with Dublin increasing by 2.3% to €467,000 and Cork, Limerick and Galway by an average of 2.4% to €281,750.

“The survey’s average of four weeks to sell should be even lower because, while bidding is fast and furious, vendors are not rushing to accept offers,” said REA spokesperson, Barry McDonald.

“With an exceptional shortage of stock, demand is being fuelled by an increase in mortgage-approved buyers on the market.

“The rural flight, which began during lockdown, shows no signs of letting up, even in the face of a return to office working.”