House sale figures show Limerick landlords leaving the market

SIX in 10 houses sold in Limerick City and four in ten in the county in the last three months have been sold by landlords getting out of the rental market, new figures have revealed.

According to analysis of sales and purchases carried out by the Real Estate Alliance nationally, the exodus of landlords from the market is running at an alarming rate.

Meanwhile, the average price of a second-hand three-bed semi in Limerick City has risen to €280,000, up 2.9 per cent from €272,000 in the last three months, according to a national survey by Real Estate Alliance.

That amounts to 1. 6 per cent higher than the average price nationally.

Average prices in the county rose during this period to €230,000, up 1.3 per cent from €227,000, the Q2 REA Average House Price Index shows.

Sign up for the weekly Limerick Post newsletter

The average time taken to sell is currently four weeks in Limerick city and county.

This quarter, agents reported that properties purchased by first time buyers accounted for 70 per cent of sales in both the city and the county.

Buyers from outside of the county made up 45 per cent of sales in the county as well as 25 per cent of sales in the city.

The survey also found that 60 per cent of sales in the city and 40 per cent of sales in the county this quarter are directly linked to landlords leaving the market.

“Prices are still on an upward trajectory, but we are seeing the pace begin to slow,” said Pat Dooley, of Limerick auctioneers REA Dooley.

“Supply is still the biggest issue facing buyers, both mortgage-approved and trading up or down.”

The REA Average House Price Index concentrates on the actual sale price of Ireland’s typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.

The actual selling price of a three-bedroom, semi-detached house across the country rose by 1.3 per cent over the quarter to €297,056 – representing an annual increase of 6.6 per cent.

The price of a three-bed semi in Dublin city has hit €500,000 for the first time, rising by by 0.3 per cent in the past three months. The capital is now 14 per cent ahead of its €431,000 Celtic Tiger peak level, with demand being largely driven by first-time buyers in an otherwise cautious market.