Cork House Price Survey January 2023

The price of the average three-bed semi in both Cork City and County is expected to rise by 5% in the next 12 months, according to a survey by Real Estate Alliance.

Three-bed semi-detached homes in the city now cost an average of €355,000, up 6% on the December 2021 average of €335,000, the REA Average House Price Index shows.

The survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the second-hand property market in towns and cities countrywide.

Prices across the county rose by 6% in 2022 to €217,500 from the December 2021 average of €206,000.

Over the past three months, prices in the city grew by 1.4% and rose 2.4% in the county.

In the city, average time taken to sell rose to five weeks, up one from the previous quarterly survey.

“We predict a market similar to 2022, however that may change based on inflationary pressure easing,” said Michael O’Donoghue of REA O’Donoghue & Clarke, Cork.

“There continues to be good demand from first time buyers in the new homes market since the start of the year which is reflected in a general increase in sales and new developments coming on stream.

“Interest rate uncertainty and inflationary pressures, together with the continuing situation in Ukraine, have now at this point fed into the property market.

“However, with the first sign of inflationary easing, overall demand continues to be good with a mixture of both cash purchasers and mortgage approved clients.

“Also more second hand properties are coming to the market which takes account of landlords exiting the market.

“While the level of bidding has slowed somewhat, there remains significant demand in relation to all property types in both the city and its surrounding satellite towns.”

The actual selling price of a three-bedroomed semi-detached house across the country rose by 0.36% over the past three months to €291,667 – representing an annual increase of 8%.

However, house prices in Dublin have fallen slightly by -0.34% in the same period, as mortgage interest rate rises and cost of living increases stem the stream of potential homeowners.

REA agents throughout the country expect prices to rise by just under 3% on average in the next 12 months.

The property market is expected to enjoy a calmer 2023 as mortgage interest rate rises and cost of living increases affect buying ability, according to the nationwide survey.

In Dublin city, which is currently experiencing small price drops in certain areas, agents anticipate modest increases of 3.6% across the year.

This comes off the back of a 2022 which saw average house prices rise by 8% nationally and 5% in the capital – with feverish early year increases slowing down in the autumn and winter.

The country’s large towns experienced 10% growth last year, with 1.2% in the final quarter, and REA agents say that this will continue throughout next year, albeit at a slower pace, with growth of 3% predicted.

The majority of REA members feel that the scheduled changes to the Planning Acts will have little effect on market supply in 2023, due to the time lag between legislation and enactment.