HOUSE prices in Donegal are set to rise by ten per cent according to local auctioneers and estate agents.
The news follows a nationwide survey of prices published on Saturday.
‘How Much Is Your House Worth? 2015’, a study of the movement of all property types through 64 local markets, shows that all but a handful of areas have seen prices rising through the past 12 months.
In Donegal prices rose by about three per cent last year but with very little building, the strength of sterling and prices at the bottom end will all contribute to a ten per cent hike is on the cards.
In Letterkenny, Joe Reynolds of Property Partners Paul Reynolds, says that last year started quiet and got busier as the year went on. He believes that the market has finally reached the bottom.
“There is very little new building and the stock is just not out there,” he said.
“ That means that prices will have to go up. It won’t be as fast or as much as in Dublin, but I reckon that in Letterkenny prices will rise by about 10pc over the next year,” he added.
Cormac Meehan, who is based in Bundoran, reports that the majority of transactions in his market are for houses that will be used as holiday homes, whether or not they are designated as such.
“The market is starting to recover, and there is a little bit of confidence out there. Our viewings are way up, and there is a bit of stability in country areas, both of which are heartening.
“However, the consumer is still of the mindset that there will be more distressed property coming on the market in the year ahead, and is holding out for a bargain.”
With the increase in the value of sterling, Meehan notes that the purchasing power of those resident in Northern Ireland is more apparent, although there is no real impact on prices.
“It used to be that the key words that I put on to our website that generated the most hits would be words and phrases such as ‘surfing capital of Ireland’ or ‘near an excellent golf course’.
“These days it’s all about price, and we have analysed that the key number is €150,000. Buyers search for properties under that magic figure.
“You can have the best of properties priced at €300,000 and €350,000 and they get very few hits.
“The vendors of the better properties have stayed out of it, because they’re not convinced that they’ll get a decent price.”