House prices are on the rise again.

The cost of the average three-bed semi in Cork City is expected to rise by 5% over the next 12 months, according to a survey by Real Estate Alliance.

Prices increased by €5,000 between September and December to €325,000, a rise of 1.6%, the Q4 REA Average House Price Index shows.

As supply struggles to keep pace with demand, the time taken to sell the average house in the city fell from ten weeks in September to eight weeks at the end of Q4 2020.

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

The market is ‘stable and steady’

“Overall, demand continues to be relatively strong with a mixture of both mortgage approved and cash purchasers, but lack of stock coming to the market remains an issue,” said Michael O’Donoghue of REA O’Donoghue and Clarke, Cork.

“In our opinion, the market at this point is quite stable with steady demand overall for various property types throughout the city and county.”

“We would see a possible increase of 5% in 2021 but this is dependent on both Brexit and the impact of the pandemic throughout the year.”

Cork County prices up 2.1%

Prices in Cork county increased by €1,000 between September and December, a rise of 0.6%, the Q4 REA Average House Price Index shows.

Three-bed semi-detached homes in the county now cost an average of €179,750, up 2.1% on the December 2019 average of €176,000.

Nationally, average house prices rose by almost 1.5% over the past three months in a market fuelled by a combination of record mortgage approvals and an unprecedented lack of supply, the Q4 REA Average House Price Index found.

The price of a three-bedroomed semi-detached house across the country rose by more than €3,000 over the past three months to €239,194 – an annual increase of 1.9%.