Virginia will be first to see return to building – Woods

 

House prices are beginning to climb once again, as first time buyers rush to get hold of property from a limited supply. One local auctioneer says that houses in the east of the county, particularly in Virginia, are achieving much higher prices than similar house in Cavan Town or in other parts of the county. Consequentially, he feels Virginia will be the first town to see a return to building new homes.

“At present because house prices are higher in Virginia, than in any other part of the county, Virginia will probably be the first area in the County to witness the building of new homes. I believe that there are sites in Virginia currently being looked at and explored from a building perspective – which is good news,” said local auctioneer and valuer, Declan Woods of Sherry FitzGerald.
He further pointed out that Virginia is about 40 minutes from the M50 and is seen a very commutable – a lot of employment and activity is in place on that North/West side of Dublin
“At the moment for a builder to come into Cavan Town and build new homes to modern regulations – he will not do it for €125,000 to €135,000 or even €140,000 we are telling him he will get – he will be in a negative situation straight away,” added the auctioneer.
The latest house price statistics from myhome.ie last week reported that a three-bed, semi-detached house in Cavan is making €125,000, which is up 5.4% in the first quarter of 2017. Similar houses in Monaghan are fetching €135,000, up eight per cent in the first three months of the year, while in Meath such houses are making €195,000, a rise of 2.63% since the start of 2017. The average price paid for all houses sold in the Breffni county in the first three months of the year now stands at €142,539 - up seven per cent on the same period in 2016.
The MyHome data for early 2017 also points to a tightening housing market. The stock of houses listed for sale fell to a fresh low of 19,430, down 10.3% on this time last year.
In Mr Woods' experience, the price range currently being achieved for a three-bed semi in Cavan is €125,000 to €130,000 with some even fetching €140,000. There are also some properties coming on the market at €90,000 to €100,000.
Two bedroom apartments are now achieving €70,000 to €80,000, having doubled in price since the very bottom of the price decline.
Mr Woods added the purchase of new homes is not relevant to Cavan or Monaghan, as there is no building going on at present except for perhaps some one-off homes on family plots in rural areas. It is still cheaper to buy an existing home, rather than to build a new one.