The average selling price of a three-bed semi-detached house has risen above €300,000 for the first time since 2007, an increase of 28 per cent over the past three years, according to Real Estate Alliance (REA).
Since July, average selling prices for a typical stock home increased by 1.4 per cent, representing an annual increase of 3.7 per cent, according the latest REA Average House Price index.
Prices in Dublin rose 0.8 per cent with average selling prices reaching €504,167 over the past three months, up 1.3 per cent since last year.
In cities outside the capital, the annual rate of increase halved to 4.5 per cent from the end of June with prices in Cork up 1.4 per cent to an average of €365,000 and Limerick up 1.8 per cent to €285,000.
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Some 65 per cent of sales in Limerick were “directly linked” to landlords leaving the market, according to locally compiled data.
Overall, REA spokesman Barry McDonald said “buyer profile is changing” across the market,"with younger first-time buyers being increasingly forced to travel for affordability.”
“A stream of interest rate rises are affecting borrowing capacity and placing ever lower ceilings on first-time buyer budgets,” he said.
“The condition of the property, and its BER rating, is all-important, probably now more than ever as buyers cannot afford the additional costs of home renovation.”
Meanwhile, more than half (57 per cent) of sales nationally were to first-time buyers and as much as 85 per cent in counties Wicklow, Meath and north county Dublin.
Within Dublin city, the proportion of first-time buyers fell from 72 per cent a year ago to 43 per cent.
