IN NEWS THAT will surprise absolutely nobody who is house-hunting, house prices continue to rise.
Both the Daft.ie and MyHome.ie reports published this morning show that the divide between Dublin and the rest of Ireland persists, but that the prices are only going one way.
In the capital, prices are up 1.1% in the last year, compared to a rise of 10.2% on average outside Dublin. Compared to three months ago, there has been a slight uptick in inflation outside the capital. On the whole, prices across the country rose 6.3%.
The national average asking price in the second quarter of 2016 was €215,000, compared to €202,000 a year ago and €164,000 at its lowest point. In Dublin, prices have risen by an average of €94,000 – or 42% – from their lowest point in mid-2012. The average asking price for a house in Dublin city is now €314,311.
Outside the capital, the average increase has been €43,300, or 32%, since the end of 2013.
While prices are stable in Dublin, they continue to increase strongly in other cities. Compared to the same period in 2015, prices in the second quarter of 2016 were 11.2% higher in Cork and 14% higher in Galway. In Limerick city, the increase was 15.2%, while in Waterford prices rose by 17.4% in 12 months.
Inflation outside the cities varies from 9% in Munster to 12% in Connacht-Ulster.
Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said that the issue remains one of supply and demand.
While supply pressures have eased slightly in the last three months, the overall dynamic in the housing market currently is one of very strong demand pulling up prices. In Mayo and Roscommon, for example, average prices have increased by roughly 10% since the start of the year.
In the MyHome.ie report, the price of newly-listed properties rose by 5% nationally.
The mix adjusted asking price for new sales nationally is now €231K, while the corresponding figure for Dublin is €326K – an increase of €11K for both on Q1.
The author of the report, Conall MacCoille, Chief Economist at Davy, said the supply shortage and wage inflation were the key factors underpinning the latest price surge.
The number of homes for sale is down 6.7% on last year to 23,520, which is close to historical lows. Not surprisingly properties are selling increasingly quickly with the average ‘sale agreed’ time falling to just four months, a new low.
Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.