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House prices in Donegal rising

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The average price of a three-bed semi in Donegal has risen by 8.53 per cent in the first six months of the year, according to a national survey carried out by Real Estate Alliance.

The price of an average three-bed semi in the county is now €70,000, a rise of 11.11 per cent over the past 12 months, the Real Estate Alliance Average House Index has found.

REA McElhinney in Bundoran report that the market is showing improvement, with the average time to sell a property dropping from 24 weeks a year ago to 12 weeks now.

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“There is a shortage of property in the Bundoran area at the affordable end of the market as semi-detached properties in the seaside resort at an affordable price are being snapped up,” said Michael McElhinney from REA Bundoran.

“The upper end of the market is still slow in the North West but as the banks are beginning to provide mortgages this will improve the higher end of the market.

“We had an offer of €300,000 on a luxury detached residence in Bundoran, the highest offer on a property since the crash. We hope this trend will continue and in our own office we have increased our staff to cover the increase in activity in the market.”

The price of an average three-bed semi nationally has risen by 11.12 per cent to €170,074 since the end of December.

In Dublin city, the average three-bed semi is now costing €348,333, an increase of 11.76 per cent on the December figure of €311,667.

However, in the commuter counties and smaller cities like Cork and Galway, three-bedroomed semis have increased by 15.54 per cent to an average price of €182,353 in the first six months of the year.

“The shortage of supply of starter homes in the commuter belt and large urban areas such as Cork and Galway is every bit as challenging as the situation in Dublin,” said Real Estate Alliance CEO Philip Farrell.

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“In many cases we are now seeing increases in value which exceed that of Dublin.

“There is further evidence of a three-tier market in existence, with urban areas in the rest of the country seeing half of the growth of the commuter belt with values at an average of €106,345, up 6.57 per cent in the first six months.”

The survey of 50 REA members nationwide also reported a 20 per cent increase in mortgage-financed sales and a 32% reduction in selling time for properties since the start of the year.

The REA index concentrates on Ireland’s typical stock home, the three-bed semi, giving a picture of the property market in towns and cities countrywide.

Three-bed semis have seen a rise of 19.69 per cent across the country over the past year, while prices in Dublin city rose by 21.16 per cent.

The average price of a three-bed semi is now €170,074 nationally including Dublin, an increase of 17,018 (11.12 per cent) on the end-Dec 13 figure of €153,056.

The average three-bed semi in Dublin now costs €348,333 – a jump of €36,666 since the start of the year.

Three beds in Tallaght and the Dublin 24 area have jumped by 25 per cent from €160,000 in December to €200,000 at present.

“Tallaght, in particular, is reflecting a huge shortage of property on the market, particularly family homes,” said Philip Farrell.

“Rents are also increasing making it cheaper in many cases to buy than rent.

“Prices are also being influenced by the fact that there was very little property moving in the area a year ago.”

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