By John Dolan
I would have made a bet with anyone that the first of the lockdowns of March 2019 would have led to a reduction in house prices in the coming months and indeed years. Luckily nobody took me on with my bet!! The house prices went the complete opposite direction and instead of collapsing they have been increasing ever since. We can see this increase even more since the beginning of 2020. Especially in Ballinasloe and similar east Galway towns like Loughrea, Athenry and Tuam.
Bidding wars have been common all year round which is frustrating for the purchasers but a great result for sellers. And although the general media tend to sympathise with the buyers it has taken a long time for the people of Ballinasloe to see their house prices return to Celtic Tiger levels. Indeed in some cases they haven’t quite reached this level to date.
I recall selling one particular property in a lovely estate in Doire Beg, Derrymullan in around 2017/2018. It was one of my last good sales before the crash. This house was a 4 bed detached home in excellent decorative order and at that time the house made €310,000. So circumstances changed and the house was placed on the market in 2013.The house was more run down than when it was on the market in 2007. Guess what it sold for then? Only a mere €95,000!!. Yes Folks a whopping 69% of a drop!!! I knew these new buyers were getting a bargain and fair play to them as they purchased right at the bottom of the market.
So scroll forward to 2021 and John Dolan Auctioneers gets instructed on a house in Doire Beg, Derrymullan. We decided to put it on at an asking price of €225,000 which sounded like a fair price at the beginning of the year. However after an intensive bidding war between a number of parties the house sold for €280,000. A great price, however still not at the level we were at in 2007. So this level of increase is right across the board with both town and country properties which equates to approximately 20 to 25% for last year alone. This was reflected with sales in our other office in Galway city where properties in Knocknacarra, Doughiska and other towns like Athenry and Loughrea all experienced competitive bidding wars and a shortage of supply.
Rents on the other hand have surpassed their level of any Celtic tiger era. A good 4 bed semi detached in an area like Creagh now will rent for €1,200 per month which is difficult if you are a first time buyer couple trying to save for a deposit.
With no new houses being built locally for the last 10 to 11 years supply is still a big problem and will remain a problem for the next few years. AS well as that houses were seen as more affordable in Ballinasloe than the likes of Galway city which has also contributed to price increases locally. Added to the fact that a lot of people who can work remotely and maybe spend one day in the office in Dublin or elsewhere. We all know what the convenience of Ballinasloe with easy commutes to Dublin by road or by train. Not only that but when you look at the large Tesco, Aldi, Lidl, Shearwater Hotel, Great primary and secondary schools and an excellent hospital the town has a lot to offer and is holding its own amongst its neighboring Galway County towns
It's been a very successful year for sales at John Dolan Auctioneers but supply will remain the big challenge going forward for 2022.
For more information on this press release contact John Dolan Auctioneers in main Street, Ballinasloe or Gray Office Park Headford Road, Galway on 0868206690
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