House prices grow by almost eight per cent

Asking prices for properties in County Cavan have increased by nearly eight per cent compared to the same period last year, according to the latest Daft report.

The Q4 house price report published this week shows that the average asking price across all types of residential properties in County Cavan was €218,527, a rise of 7.6% on the final quarter of 2022.

Declan Woods of Sherry FitzGerald Auctioneers in Cavan Town was somewhat bemused by the asking prices cited in the report for certain types of property, but he agrees broadly with the scale of the upward trend.

The Cavan Town based auctioneer points to three-bed, semi-detached properties as a safe barometer of the state of the property market. In Cavan Town, he suggests, this time last year such a home would go for “around €200k”, and has risen to €215-€220K now. This equates to a 7.5-11% rise.

The Daft report breaks down the prices for various types of property, which Mr Woods believes are “way off”.

“There’s none of those figures that would be in line with the market in Cavan,” he opines.

He points to the asking price for four bed bungalows at €256K, and observes: “A four-bed detached in a typical development in Cavan Town - say Rocklands, Meadow Park, Carrickfern it’s going to realise somewhere in the region of €300-€325K,” he says, adding, “they’re not in the same parish”.

Mr Woods finds “the big trend” in the market over the last 18 months has been how the BER rating has come “front and centre” of buyers’ minds in deciding on a property.

“The BER has been in situ since around 2010 but people have only begun to really cotton on to the value of it. For example, to have a ‘B’ energy rating, qualifies you for a ‘Green Mortgage’, which is a preferred rate.”.

Mr Woods says the BER is particularly relevant for County Cavan as there has been such a dearth of new builds.

“Most of our housing stock in Cavan was built in that period of the noughties - 2004-2007. You are now looking at housing that’s almost 20 years of age that needs an investment in it. Prospective buyers don’t have the ability to have saved up a deposit, get the mortgage to buy the house and, in turn, have a fund to allow them to modernise the house,” he surmised.

The auctioneer also notes that rents have “risen dramatically” and concurs with the report’s findings that people are struggling to raise a deposit while meeting their rent.

“Those are the things, for me, that for me will probably stem the rise in the second hand market,” he said.

Overall Mr Woods says there is a “scarcity of good quality stock” and, when a good home comes to the market, it will ordinarily attract a “substantively” higher price than its listed price.

He also says that the demand for homes from non-Irish nationals has surpassed the more traditional buyers.

James Spring of REA Donohoe Spring agreed with the rising prices reflected in the report.

“Last year was a really good year,” reports the West Cavan auctioneer, noting the continuing upward trend in recent years of recovery.

“Prices are perceptively higher and vendors are happy. But we’re not into the realms of silly money where buyers are going to regret their purchase because everything we’re selling is still below build cost.”

In December a report by the SCSI cited the cost of building a three-bed semi in the nothwest at circa €350K; and €386K nationally (when Dublin is excluded).

“I think in different sectors of the market there’s definitely scope for further increase, but I don’t think they are going to be massive. We’re not getting into the situation where people are buying properties and then able to flip them on and make money. It just feels like a very natural progression at the moment.”

Mr Spring predicts more landlords with single properties leaving the rental market, more people taking up the grants for renovation of derelict properties “as more people realise it’s a fairly good deal”.

He reports being “very happy” with the properties on his books, describing them as “a nice supply” of houses for the New Year.

“Everything that came in was being sold. Before we broke up for Christmas, we had five sales that week.”

“There’s no new builds on the horizon and I’d be highly surprised if I see any this year in west Cavan.”