Property prices in Galway stayed steady during the last quarter of 2023, according to the latest MyHome.ie Property Price Report.

The report found that the median asking price (or ‘middle price’) – which can be thought of as the price of the house which is more expensive than exactly half of the other houses – for a property in the county is still €295,000. This means prices have risen by €10,000 compared with this time last year.

Asking prices for a three-bed semi-detached house in the county also remained unchanged over the quarter at €275,000. This means that prices in the segment have risen by €12,750 compared to this time last year.

Meanwhile, the asking price for a four-bed semi-detached house in Galway fell by €20,000 over the quarter to €295,000. This price is down by €7,500 compared to this time last year.

There were 717 properties for sale in Galway at the end of Q4 2023 – a decrease of 10% over the quarter.

The average time for a property to go sale agreed in the county after being placed up for sale now stands at just over two-and-a-half months. In the city, it is just over two months.

The author of the report, Conall MacCoille, Chief Economist at Bank of Ireland, said: “If asking prices were under pressure at the start of the year as the market adapted to a new interest rate environment, the picture at year end was very different.

“Continuing supply issues meant that the market heated up again and by year end we saw once again that asking prices nationally were up over 4% over the year as a whole. “Furthermore, we are seeing properties being sold for 4% over asking prices compared with 1% at the start of the year, indicating a more competitive market.

“Ireland’s buoyant labour market has meant that high interest rates have not had a negative impact on property prices. Indeed, Revenue estimates that there has been a 50% rise since 2022 in the number of tax units (single or jointly assessed couples) with incomes exceeding €100,000.

“As for [2024], our view is that the most likely outcome is another single digit rise in house prices over the course of the year. There will again be competing pressures on prices coming from elevated rates of interest on the one hand and continuing supply shortages on the other. If anything, the rise may be sharper given the supply issues and the possibility – despite mixed signals from policymakers – of interest rate reductions happening at some point during the year.”

Joanne Geary, Managing Director of MyHome.ie, said: “Supply shortage is now a very real issue. Pre-Covid, there were about 20,000 homes listed on MyHome.ie.  At the end of Quarter 3, that was down to 13,400. But at the end of Q4 the number of listings was down again to just 11,400. That is close to the historically low levels we saw during the pandemic.

“We welcome the recent extensions and changes to the Help to Buy and First Home schemes, as well as the grant available for vacant, derelict homes and for those looking to retrofit. That being said, more needs to be done to unlock supply as it will be real crisis issue for the market as we look to 2024 and beyond,” she said.

Pictured: Joanne Geary of MyHome.ie: supply is almost back to historical low during pandemic.