It’s too soon to be sure of a housing recovery

Of all the calamities to befall the economy in recent years, nowhere was the economic crash more keenly felt than in the housing market.

Between Sept 2007 and Feb 2013, national average house prices fell by 50.7%, with apartment prices in Dublin down by a whopping 58.8%. The latest house price index from the CSO does suggest that the housing market, or at least part of it, is starting to show some faint signs of life.

A health warning is required, because the index relates to houses that are sold and based on a mortgage transaction. Estate agents suggest that over 40% of transactions over the past year were cash rather than mortgage transactions. Be that as it may, the index is the best available and gives a pretty comprehensive picture of a significant segment of the housing market.