Rising prices in the Donegal property market

The average home price in Donegal is now € 178,000, 56% above its lowest point, according to the latest daft.ie sales report. In Donegal, prices in the last three months of 2021 were 12% higher than a year earlier, compared to a 14% increase seen a year ago.

The nationwide average price in the last quarter of 2021 was € 290,998, up 0.6% from the third quarter of 2021 and just 21% below the Celtic Tiger peak.

The largest price increase in the country was seen in Connacht-Ulster, where prices rose 14.6% in 2021.

Trinity College Dublin economist and report author Ronan Lyons said: “List price inflation continues to cool from its mid-year peak. Nevertheless, at nearly 8% over the year, it remains stubbornly high. This reflects the combination of exceptionally high demand and still low supply. Demand for homes to buy, which had been strong anyway since the mid-2010s, received an unexpected boost during the Covid-19 pandemic, with potential buyers being able to tap into “accidental” savings as spending went downhill. decreased during closings.

“Meanwhile, the supply of new and used products remains weaker than expected before the pandemic. While the pandemic has altered some details, the overall health of the housing market is largely unchanged – characterized by low supply in the face of high demand. For this reason, an additional supply – not only of homes for sale but also of market rental and social housing – remains the key to solving the chronic housing shortage in Ireland. “

The full report is available here.