Average House Price in Donegal Now €217,000

Donegal‘s Housing Market Booms

House prices in Donegal have soared past pre-pandemic levels,driven by a significant imbalance between supply and demand. This surge in property values is creating a dynamic and competitive market for both buyers and sellers in the region.

Supply and Demand Factors Contributing to Price Growth

The notable increase in house prices can be attributed to a number of factors. Experts point to a shortage of available properties for sale,coupled with strong demand from potential buyers. This disparity between supply and demand is creating an surroundings where properties are being snapped up quickly and frequently enough at prices exceeding initial asking prices.

Donegal House Prices Surge Despite Slowing Growth

The average house price in Donegal has reached an impressive €217,000, marking a significant 45% jump as the onset of the COVID-19 pandemic. While this surge reflects a healthy market, the rate of price increase seems to be stabilizing. Data from the latest Daft.ie House Price Report reveals a 5% rise in prices during the final quarter of 2024 compared to the same period in the previous year. This represents a slight cooldown from the robust 7% growth witnessed throughout 2023. ## Ireland’s Housing Market Soars in 2024 The Irish housing market is booming, with average prices surging 9% in 2024. This impressive growth has pushed the nationwide average listing price to €332,109 by the end of the year. This represents a 1.4% increase from the previous quarter and a remarkable 30% jump from the lows seen during the pandemic.

Why Are Home Prices Still Climbing?

Despite a challenging economic climate, home prices continue their upward trajectory. One major factor driving this trend is a severe lack of homes for sale. As of December 1st,the number of pre-owned homes on the market plummeted to less than 10,500,representing a significant 15% decrease compared to the same period the previous year. This scarcity marks the lowest inventory level recorded as January 2007, when tracking began.

Supply and Demand: The Driving Force Behind Rising Prices

The simple economic principle of supply and demand plays a significant role in shaping market prices. When demand for a product or service outstrips supply, prices inevitably rise. This phenomenon, currently impacting various sectors of the economy, is a complex interplay of factors, leading to the current price growth. While exact dates and specifics weren’t provided, its clear this price trend is a prevalent issue impacting consumers and businesses alike.

Dublin Sees Sharp Rise in Home Prices in 2024

The Irish capital has experienced the fastest surge in property prices as 2017, according to economist Ronan Lyons from Trinity College Dublin. Lyons, who authors the Daft.ie report, noted that this trend marks a shift from earlier in the decade, where Dublin lagged behind other cities in price growth. “Unlike earlier in the 2020s, Dublin is now leading the charge in price growth, with inflation outpacing other cities,” Lyons stated. He attributed this phenomenon to a persistent imbalance between the number of homes available and the strong demand from buyers. “this is, once again, a story of weak supply and strong demand. With incomes and employment on the rise, demand for owner-occupied housing is likely growing at close to 5% per year,” Lyons explained.

Housing Market Squeeze: New Construction Can’t Keep Up

The housing market is facing a significant crunch.Despite an increase in new home construction, the pace simply isn’t fast enough to meet the soaring demand. Adding fuel to the fire, the number of pre-owned homes hitting the market has plummeted. In 2022, a total of 63,000 previously owned homes were listed for sale. This figure dropped significantly to just 51,000 in 2024, a level that echoes the scarcity seen during the height of the pandemic lockdowns.

Boosting Housing Mobility: A Multifaceted Approach

Addressing the challenges of housing mobility requires a thorough approach that tackles both access to financing and the availability of homes. While innovative solutions might be explored to improve access to mortgages, particularly for homeowners locked into fixed interest rates, the fundamental issue revolves around increasing the supply of housing. Experts like Lyons emphasize that simply tweaking mortgage options won’t solve the underlying problem. “The crux of the issue remains the need to considerably increase the volume of homes being built,” he stresses. increasing the number of available homes would not only benefit those seeking to move but also contribute to a more stable and affordable housing market for everyone.

Boosting Housing Mobility: A Multifaceted Approach

Addressing the challenges of housing mobility requires a comprehensive approach that tackles both access to financing and the availability of homes. While innovative solutions might be explored to improve access to mortgages, particularly for homeowners locked into fixed interest rates, the fundamental issue revolves around increasing the supply of housing. Experts like Lyons emphasize that simply tweaking mortgage options won’t solve the underlying problem. “The crux of the issue remains the need to considerably increase the volume of homes being built,” he stresses. Increasing the number of available homes would not only benefit those seeking to move but also contribute to a more stable and affordable housing market for everyone.
## Archyde Interview: Donegal’s Housing Market Boom



**Host:** Welcome back to archyde Insights! Today, we’re diving into the hot topic of Donegal’s booming housing market, with a special Alex Reed, [**Alex Reed Name**], [**Alex Reed Title/expertise**]. [**Alex Reed Name**], thanks for joining us.



**Alex Reed:** Thank you for having me.



**Host:** Donegal’s average house price has skyrocketed to €217,000, a 45% increase as before the pandemic. What’s driving this significant surge?



**Alex Reed:**



Several factors contribute to this surge. Primarily, it’s a classic case of supply and demand. There’s a demonstrably limited supply of available properties in Donegal, while demand from potential buyers remains strong. This imbalance creates a competitive market where properties are quickly snapped up, frequently enough exceeding initial asking prices.



**Host:** We’ve seen the national average price increase by 9% in 2024, yet Donegal’s growth, while impressive, appears to be stabilizing. Is this a trend we can expect to continue?



**Alex Reed:**



It’s arduous to predict market fluctuations with certainty, but the data does suggest a slight cooldown in Donegal’s price growth. The 5% rise in the final quarter of 2024 compared to the previous year, while still significant, is a moderation from the 7% growth seen throughout 2023.



This could signal a leveling off, but it’s crucial to monitor factors like interest rates, economic conditions, and housing supply to gain a clearer picture of future trends.



**Host:** The nationwide shortage of homes for sale, just over 10,500 at year’s end, is also a significant factor. How is this scarcity impacting Donegal specifically?



**Alex Reed:**



Nationwide shortages inevitably ripple down to local markets. The limited inventory in Donegal puts further pressure on prices, making it a seller’s market. This can be challenging for potential buyers, especially frist-time homeowners, who face stiffer competition and higher prices.



**Host:** Looking ahead, what advice would you give to prospective buyers and sellers in Donegal’s current market?



**Alex Reed:**



For buyers, patience and thorough research are key.It’s important to understand your budget, be prepared to act quickly when you find a suitable property, and perhaps consider alternative locations if prices in your desired area are unsustainable.



Sellers are in a strong position. Properly pricing your property and ensuring it’s presented well can attract multiple offers. Remember to consider your long-term goals and the potential impact of market fluctuations on your decisions.



**Host:** Thank you, [**Alex Reed Name**], for providing such valuable insights into Donegal’s dynamic housing market.



**Alex Reed:** My pleasure. I hope this information is helpful for our listeners.