€21bn wiped off value of homes

THE slowing housing market wiped €21 billion off the value of Irish homes last year.

Total value of Irish housing stock reduced by 4% in the year to €511bn from €532bn the previous year.

The latest review of the housing market by Halifax, also found that homeowners have €388bn of equity tied up in their properties, compared with €421bn in 2006 and €160bn in 1999.

Total outstanding mortgage debt last year was €123bn, equivalent to 24% of the value of Irish housing assets, it said.

Head of Halifax Gabriel Bannigan said: “Despite the recent slowdown in the housing market, Ireland’s household balance sheet is in good shape.

“Irish households have a combined €388bn of equity in their homes. This equity has more than doubled since 1999, despite a modest fall last year.” 

According to the findings, housing equity has increased by 143% or €228bn since 1999, the earliest year data is available.

Despite falling last year, the value of the Irish housing stock has increased by 366% or €401bn over the last 10 years, according to the review which tracks the value of private residential housing stock at a city and national level in theRepublic of Ireland.

The increase in value of the housing stock has significantly outpaced inflation, it said, noting that inflation had risen by 43% over the past decade versus a 366% rise in the value of the housing.

It added that Irish cities last year accounted for more than a third of the value of the housing stock at €173bn. Greater Dublin accounts for 26% at €132bn followed by Cork at €21bn (4%), Limerick at €8bn (2%), Galway at€8bn (2%) and Waterford at €4bn (1%).

Housing stock in the Greater Dublin area totalled 326,554 last year and 58,012 in Cork according to the report.

However, over the past 10 years the increase in the value of the Greater Dublin housing stock at 297% has been below the national average of 366%.