Property prices in Longford have remained static in the last year, according to the latest MyHome.ie property report in association with Davy.
The report for Q3 2019 shows that the median asking price for a property in the county now stands at €110,000.
While this was unchanged from this time last year, there was a 0.5% increase in the last quarter, up €500 from €109,500. The latest minor increase means that property prices in the county haven’t been higher since standing at €120,000 in Q2 2013.
The overall trend in prices was reflected in the asking price for a 3-bed semi-detached house in the county, which were unchanged in the quarter at €95,000 but up 18.8% year-on-year from €80,000 this time last year. Meanwhile, the asking price for a 4-bed semi-detached house in Longford were up 13.5% in the last quarter from €92,475 to €105,000.
This contributed to an annual increase of 5% with prices for this house type now €5,000 up on this time last year when they stood at €100,000. The number of properties for sale in Longford on MyHome.ie jumped by 9.8% in the last quarter and was up 20.9% 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 around three-and-a-half months.
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The author of the report, Conall MacCoille, Chief Economist at Davy, said that while Quarter 3 - which covers the traditionally quieter Summer months - often shows a softening in prices, the decline of 2.8% in the national figure in this report is higher than usual.
MacCoille said the slowdown is linked to the CBI macro prudential guidelines on mortgage lending and Brexit.
He said, “We believe it primarily reflects constraints on home buyers leverage from the Central Bank of Ireland’s mortgage lending rules, now accompanied by the uncertainty of Brexit.”
MacCoille said that the slowdown does not imply that housing supply has caught up with demand.
He stated, “There were 19,300 housing completions in the year to June 2019 but we believe natural household formation is at least 30,000 per annum if not higher. Well in excess of current homebuilding levels.”
Angela Keegan, Managing Director of MyHome.ie, noted that while asking price growth is softening, other key indicators are increasing.
She noted, “The volume of recorded house price sales continues to grow, rents continue to rise, mortgage lending is up and there was an increase of some 6% in the number of new properties on the market (via MyHome.ie) at 10,846. In total there were some 23,700 properties listed on the site in September which is 4.7% up on the year and is the higher number of properties listed since mid-2015.”
Full details of the report can be found on www.myhome.ie/reports.