Above average house price growth in Cavan - IPAV

Cavan is the third cheapest place to buy a new home but the county continues to see growth in house prices above the national average.

The latest Property Price Barometer report from the Institute of Professional Auctioneers and Valuers (IPAV) shows the average price in the Breffni county for a new home stands at €150,883, representing prices for two bed apartments and three and four bed houses. Only the neighbouring counties of Roscommon and Longford had lower average prices.

A breakdown of the average price in County Cavan shows a two-bed apartment stood at €97,500 in the second half of last year, up 2.63% on the previous six months.

Three-bed houses were selling for an average of €165,000, up an even 10%. Cavan was one of only five counties to see prices grow by double digits in this section of the market.

A four-bed home, meanwhile, was €190,000, up 8.57%. The neighbouring counties of Meath, Westmeath and Monaghan saw double digit growth, along with Sligo and Donegal. Cavan had the third lowest average price for this type of home.

Overall, prices in Cavan rose by 7.07% in the second half of 2021, above the national average of 6%.

Nationally, the report shows the average rate of house price increase across the country was 6%, taking the average overall price of €294,623. That covers the six months to the end of December 2021 compared with the previous six months.

The report tracks the actual selling price of a property, rather than asking price, which is often lower.

IPAV Chief Executive Pat Davitt from Castlepollard said the property sector is now close to the level seen during the height of the Celtic Tiger.

“We are now very close to 2006/7 levels of house prices. However, we are in a very different market. At that time there was no shortage of supply, we were building 93,000 units per year. There was excessive lending with banks often approving several prospective buyers for the same property. They ended up competing against each other, thereby pushing up prices. “We now have a shortage of supply and very tight lending rules, with the Central Bank of Ireland’s macroprudential mortgage rules. Many properties are being purchased from savings and parents are contributing hugely to deposits for young buyers.”