House prices in Dublin fall for first time in 7 years

House prices in Dublin fall for first time in 7 years

Property prices have fallen in Dublin for the first time in seven years but continue to rise outside the capital.

However, inflation is slowing in most markets, prompting suggestions that prices may soon level off.

An increase in the supply of housing is being credited as the reason for the slowdown in inflation as the number of new dwelling completions is expected to increase this year in comparison to last year.

The latest Residential Property Price report from the CSO shows that prices in Dublin dropped by 0.2% in the year ending July, with Dun Laoghaire-Rathdown dropping by 6.3%. Prices in the rest of the country were 4.8% higher in the year to July.

Overall, prices are now 17.3% lower than the peak of the market in 2007 and have increased by 84.7% from the lowest point in 2013.

July 2019 saw more than 4,300 houses sold - a 5.2% increase on the same month in 2018, with new builds accounting for almost one-fifth of these.

Revenue data also shows that there were 1,360 first-time buyers in July 2019 - a 6.5% increase on July 2018.

The CSO report notes that households paid a median price of €255,000 for a property in the last 12 months, with the 10 most expensive Eircode districts in the country all in Dublin. Outside the capital, Greystones, Dunboyne, Bray, Kinsale and Ballincollig are among the most expensive areas to buy.

Meanwhile, new figures from the Central Bank shows that the number of investment properties in mortgage arrears for more than 90 days has risen once again.

Some 15% of buy-to-let loans were in arrears for more than 90 days, according to the report.

The number of principal dwellings in arrears for more than 90 days remains broadly unchanged, according to the Central Bank, while there has been a decline in the number of accounts in arrears for more than 720 days.

Some 25 homes were taken into possession by non-bank entities during the quarter, down slightly on the previous quarter. Of the properties taken into possession during the quarter, 10 were repossessed on foot of a Court Order, while the remaining 15 were voluntarily surrendered or abandoned.

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Significant slowdown in property price increases, according to CSO figuresSignificant slowdown in property price increases, according to CSO figures

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