70% increase in house sales in first half of 2014

There was a 70 per cent increase in the number of houses sold in Mullingar in the first half of the year.

According to the Property Price Register, the website where all house sales in the state are recorded, there were 124 house sales in the Mullingar area in the first six months of this year – a 70% increase on the same period in 2013 when there were 73 sales. Overall, there were 304 house sales in Westmeath between the first of January and June 30, a 45 per cent rise compared to the first six months of last year when 209 houses were sold.

Speaking to the Westmeath Examiner, Mullingar estate agent and county councillor Aidan Davitt says that his firm has noticed a “massive increase” in demand for houses and prices have risen accordingly.

“Prices have increased quite dramatically over the last year. For example, for a four bed semi in Lakepoint, one of the biggest estates in Westmeath, you were doing well to get €135,000 last year, now four bed semis are making €160 to €165,000, that’s a big increase in less than a year.

“It’s mainly first time buyers that we are seeing. In the previous couple of years a lot of the people were using savings and maybe credit unions but now invariably 80% of houses are being bought with a bank loan of some sort. Due to interest rates being so low we are also getting a few investors back into the market.

Cllr Davitt says that the primary factor in the price rises of the last year is that the lack of building activity in the last five years has created a shortage of houses. This is already having a knock on effect on the local rental market, he says.

“I’ve been saying it for a number of years at council meetings and it wasn’t a popular thing to say but the shortage of housing is really going to come home in the next few years.

“There is an imminent problem looming and it has been coming for a while. People are renting three and four bed semis, which are going to be bought by first time buyers. Where are they going to go? Rents have already gone up by 15% in the past year.”