THE price of the average three-bedroom semi-detached house in Mayo is expected to rise by 10 pecent in the next 12 months.
According to a survey by Real Estate Alliance (REA), the actual average sale price of three-bed semi-detached homes in the county now stands at €190,000. This represents a 12 percent jump on the December 2021 average of €170,000.
The survey noted that houses in Mayo fell by 2.6 percent in the last quarter of 2022, largely due to rising interest rates and cost of living increases.
The average price in Westport this quarter fell by almost 6 percent to €240,000, while Castlebar prices dropped by 2.5 percent to €190,000. The average time it takes to sell a property has also risen from seven weeks to ten.
Robert McGreal of REA Mayo told The Mayo News that the raising of mortgage lending caps – first announced last October - also dampened demand in the last quarter of 2022.
Since January 1, borrowers can now apply for mortgages up to four times their annual salary instead of the previous limit of three-and-a-half times.
“People were seeing would property prices drop because of the interest rate increase and also they would have the ability to borrow more money in the new year,” Mr McGreal said. “They probably stood back and said we’ll wait until 2023 until we see where we’re at. I’m hoping, fingers crossed, that that will translate into a latent increase in viewers and interest in property in the first and second quarter of this year.
“Last year in 2021 and the beginning of 2022, on average you could have had five or six people viewing and strongly interested in properties. That probably halved to two or three people per property by the end of 2022,” he added.
Castlebar-based auctioneer Al McDonnell said that rising mortgage interest rates had had a ‘calming effect’ on the market.
“The increased energy costs associated with the Ukrainian situation has also had a minor negative influence on the market as well,” Cllr McDonnell told The Mayo News.
“I think that projection [of house price increases] is optimistic unless there’s a very early resolution to the Ukrainian situation which is something that most forecasters are not foreseeing.”