THE AVERAGE ASKING price of a newly listed property in Dublin is recorded as €376,000 according to property website MyHome.ie’s latest house price report.
The average asking price for houses nationally during the third quarter of this year was €269,000, down 2.8% on the previous quarter.
In Dublin, the average figure was down 1.4% in the quarter to €376,000.
The report was published in association with Davy.
MyHome.ie has reported that the annual rate of asking price inflation for houses was just 0.3% to the end of the third quarter of the year.
This is expected to be close to zero by the end of the year, it said.
The author of the report, Conall MacCoille, chief economist at Davy, said the while quarter three (which covers the traditionally quieter summer months) often shows a softening in prices, the decline of 2.8% in the national figure in this report is higher than usual.
MacCoille claimed the slowdown is linked to the Central Bank of Ireland’s macro prudential guidelines on mortgage lending and Brexit.
“We believe it primarily reflects constraints on home buyers leverage from the Central Bank of Ireland’s mortgage lending rules, now accompanied by the uncertainty of Brexit,” he said.
MacCoille said that the slowdown does not imply that housing supply has caught up with
demand.
“There were 19,300 housing completions in the year to June 2019 but we believe natural household formation is at least 30,000 per annum if not higher … well in excess of current homebuilding levels,” he said.
Angela Keegan, managing director of MyHome.ie noted that while asking price growth is softening, other key indicators are increasing.
“The volume of recorded house price sales continues to grow, rents continue to rise, mortgage lending is up and there was an increase of some 6% in the number of new properties on the market (via MyHome.ie) at 10,846,” Keegan said.
In total, there were some 23,700 properties listed on MyHome.ie in September. This is up 4.7% on the year and is the highest number of properties listed since mid-2015, Keegan noted.
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