Real Estate Alliance expects the average three-bed semi in Cork to rise by 4% in the next year.

House prices to jump by 4% in Cork

A Government which fails to fix the problem of high house prices “deserves to get blown away at the next election” a Cork TD has said.

Speaking after it was revealed that the average three-bed semi in Cork city and county is expected to rise by 4% in the next 12 months, Solidarity TD for Cork North-Central Mick Barry said young people trying to buy a house in Ireland have been put into an impossible position.

“We were told at the start of last year that house prices were coming down and that the market would fix the problem of high prices. But any fall in prices has been reversed and the asking price for houses has only continued to rise,” said Deputy Barry.

“The solution is for the State to build a record number of social and affordable houses,” he added.

According to a newly published survey by Real Estate Alliance (REA), three-bed semi-detached homes in Cork city now cost an average of €370,000, up 4% on the December 2022.

Meanwhile, prices across Cork county rose by 2% in 2023 to €222,500 from the December 2022 average of €217,500.

The survey revealed that first-time buyers accounted for 15% of purchases in both city and county, with 20% of sales being attributed to landlords selling.

Commenting on the survey’s Cork-specific findings, Michael O’Donoghue of REA O’Donoghue & Clarke, Cork said: “There continues to be steady demand from first-time buyers in the new homes market in the latter part of 2023, which is reflected in a general increase in new home sales together with new developments coming on stream.

“Overall demand continues to be good, with a mixture of both cash purchasers and mortgage approved clients.

“Inflationary pressures now seem to be easing somewhat and the interest rate cycle seems to be at an end, but the cost of building continues to rise which is affecting the price of new homes and having an impact on older second-hand properties.

“However, overall demand remains steady in relation to all property types in both the city and its surrounding satellite towns which should continue into 2024,” added Mr O’Donoghue.

According to the REA, estate agents across the country are predicting the three-bed semi prices will rise nationally by 3% in 2024.

A record shortage of supply has driven a 1.5% rise in the last three months in Dublin city, but only in houses under a certain price, the survey found.

Prices in Dublin city rose by 1.5% in the last three months, meaning that the average three-bed semi in the capital is now selling at €511,667 – an increase of 3% in the last year.