Cost of typical home went up by €20,000 in a year due to supply squeeze

The typical, or median, price of a home sold in the first three months of this year was €20,000 more expensive than the same period last year.

The median price was €330,000, up from €310,000 in the same period a year earlier, according to data on property sales compiled by technology company Geowox.

Prices rose by 6.5pc in the first quarter compared with the same period last year. Fewer homes for sale has meant that buyers are being forced to pay more.

Not enough new homes are being built to meet demand, while there is a record shortage of second-hand homes for sale.

The median price of a home has risen steadily. At the start of 2017, it cost €206,000 for a typical home across the State. It means the median price of residential property has shot up by €124,000 in seven years.

Today's News in 90 seconds - 20th April 2024

The Geowox data is based on all entries in the January-to-March period on the Irish residential property price register.

Energy-efficient homes achieved a median sales price of €387,000 this year.

This is a €71,000 premium over the €316,000 for non-efficient homes. This energy-based comparison excludes new homes to gain a more precise understanding of the energy efficiency premium, Geowox said.

Homes with a building energy rating (BER) of B3 or better also qualify for lower “green” mortgage rates.

A total of 10,213 homes were sold in the first quarter of the year. This is down 18.4pc on the same period last year.

County Dublin had the highest number of sales in the quarter at 3,095 units. Median prices in County Dublin reached €445,000.

In Dublin city, the typical price rose to €500,000, according to GeoWox.

There was a fall in the total number of new-home sales when compared with last year. 1,595 new-home sales went through – a fall of 26pc.

New homes transacted at a median value of €408,000. This is a €106,000 premium over the median for existing homes, at €302,000.

Head of data at Geowox, Marco Giardina, said: “Home transaction volume is on a strong downward trend. Meanwhile, prices maintain a steady growth path in rural and urban areas.”

The data extracted from the filings on the property price register shows that rural home prices rose by 4.9pc on last year.

Urban home prices rose by 4.2pc in the first three months of this year, compared with the same period last year.

A chronic shortage of homes to buy, combined with demographic changes, is keeping demand for properties strong and sending prices up.

The Central Statistics Office found last week that new-home prices were up by 9pc in the last three months of last year when compared with the previous year.

Prices for existing dwellings rose by 1.6pc over the same period.

Inflation of new-home prices is attributed to the State’s Help to Buy and First Home schemes, which incentivise the purchase of new properties.