The average second-hand three-bed semi in Cork costs over 1% more than in the previous quarter.

House prices still creeping up in Cork

The price of the average second-hand three-bed semi has increased by over 1% in both Cork city and county in the past three months.

In the city the average price has risen to €365,000, up 1.4% from €360,000 in the previous quarter, according to a national survey by Real Estate Alliance (REA).

The same survey showed the average price in the county rose from €217,500 to €220,000, an increase of 1.1%.

The average time taken to sell has remained at five weeks in both the city and county, the Q3 REA Average House Price Index shows.

Landlords continue to exit the market in Cork according to REA, but while the level of bidding has slowed, steady demand remains in relation to three-bed semis in the city and its surrounding satellite towns.

The survey shows that across the county and city 15% of purchasers were first-time buyers, and 5% of purchasers in the city and 25% across the county were from outside Cork.

A total of 20% of sales in both the city and county this quarter were attributed to landlords leaving the market.

“There continues to be steady demand from first time buyers in the new homes market entering the latter part of this year, which is reflected in a general increase in new home sales together with new developments coming on stream,” said Michael O’Donoghue of REA O’Donoghue & Clarke, Cork.

"Demand for property for both new and second hand homes in the West Cork area continues to be good with continuing overseas interest in to the latter part of the year," he added.

Nationally, 57% of sales are to first-timers, a figure that rises dramatically to 85% in Wicklow, Meath and North County Dublin as mortgage-approved buyers hunt suitably priced property.

House prices in Ireland’s large towns rose by 2% in the past three months and are increasing at twice the rate of Dublin and the major cities as mortgage approved buyers chase properties within their price ceiling.

Meanwhile, the latest House Price Report shows that general house prices in Cork city were 2% higher in the third quarter of 2023 than a year previously, compared to a rise of 7% seen a year ago. The average price of a home is now €337,000, 9% below its Celtic Tiger peak. In the rest of Cork, prices in the third quarter of 2023 were 6% higher than a year previously, compared to a rise of 5% seen a year ago. The average price of a home is now €291,000, 17% below its Celtic Tiger peak.

Nationally, housing prices in the third quarter of 2023 rose by 1.1% compared to the second quarter of the year, according The typical listed price nationwide in the third quarter of the year was €322,602, 3.7% higher than a year ago and roughly 13% below the Celtic Tiger peak.

Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, said: “The availability of homes is down over 20% year-on-year, at levels of availability only previously seen during the pandemic. While the flow of properties coming on to the market has fallen, it is down only slightly comparing the last year with the previous 12 month period. With supply only down slightly but availability down a lot, demand is holding up far better than might have been expected given the rise in interest rates."