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On the up
House prices went up again last month and they're not stopping
But the rate of property price increases is slowing.
Updated at 10pm
HOUSE PRICES WENT up again last month, but the rate of inflation in Dublin has slowed down to below 10% for the first time in two years.
Overall, national prices rose by 0.9% in July, up 9.4% on last year, while in the capital prices were up 0.7% last month, and 9% above last year’s prices.
The figures from the CSO, which uses 2005 as its basis, show that house prices compared to their peak are still down by more than a third on their Celtic Tiger peak.
The 0.9% monthly gain in July is the strongest monthly gain since March and prices have increased on a monthly basis in each of the past five months following declines in the first two months of the year.
In Dublin, apartments are increasing in price much quicker than houses, but are still further away from their peak.
At national level residential property prices were 36.9% lower than their peak level in 2007. The figures show that those who were able to buy in August 2012 got the best deal, paying 60% of the peak price.
And for those still in the market, KBC says that prices will continue to grow next year, despite Central Bank measures aimed at cooling the market.
“With employment increasing strongly and after-tax incomes also set to move onto a notably healthier trajectory, we see residential property prices rising by about 5-6% in 2016.”
They say that the Irish housing market’s correlation with the jobs market means that prices will continue to climb as more and more people return to work.
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