Median asking price for property remains at €160,000
Property prices in Cavan remained unchanged in the latest quarter of 2020, according to the latest MyHome.ie Property Report in association with Davy.
The report for Q4 2020 shows that the median asking price for a property in the county has stayed steady at €160,000. This represent an increase of €5,000 compared with this time last year.Continuing with this trend, asking prices for a three-bed semi-detached house in the county also stayed steady, at €150,000. Prices for this house type are up by €5,000 compared to this time last year.
Meanwhile, the asking price for a four-bed semi-detached house in Cavan rose by €5,000 over the quarter to €170,000. Prices in the segment rose by the same amount compared with this time last year.
Drop in supply
The number of properties for sale in Cavan on MyHome.ie rose by three per cent in the last quarter but was down 26% on this time last year.
The average time for a property to go sale agreed in the county after being placed up for sale now stands at eight months.
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The author of the report, Conall MacCoille, Chief Economist at Davy, said that house price increases were now likely in 2021. “This quarter’s MyHome report points to an acceleration in annual asking price inflation to six per cent, the fastest pace in almost three years. This pressure has not yet turned up in transaction prices, although the Central Statistics Office (CSO) Residential Property Price Index (RPPI) rose by 0.5% in October, the sharpest monthly increase in over one year. It is probably only a matter of time before the official measure of house price inflation accelerates.
“As we head into 2021, homebuyers have saved additional funds to purchase homes, with sentiment helped by the likely recovery in the economy as vaccines are disbursed. Given that homebuilding will remain impaired, with banks seeking lending opportunities, too much cash is chasing too few homes – which can only push prices higher.”
Angela Keegan, MD of MyHome.ie, said: “The property market mirrors the overall economy, and we are in a much better place now than we may have expected to be earlier in the year when the virus emerged. Government COVID-19 supports, increased mortgage lending, and the concentration of job losses among mostly lower-paid workers have ensured the property market has remained buoyant, while the ongoing issue of supply has exacerbated demand leading to a rise in house price inflation.”
* The median price is the ‘middle price’. It can be thought of as the price of the house, which is more expensive than exactly half of the other houses. The report’s authors consider it is superior to the average in estimating the price of a typical house and use it in their county by county analysis of three and four-bed semi-detached properties.