The average asking price for a house has risen 14% — or €25,000 — in a year, with prices in parts of Dublin surging at over twice the average rate of increase.
The data is contained in Daft.ie’s 2014 third-quarter House Price Report, which is published today.
It shows asking prices in the capital were 25% higher in the third quarter of this year than they were in the same period last year — the highest rate of inflation since Daft.ie began tracking the figure in 2006.
The average asking price for a house has now risen to €195,000, compared to €170,000 a year ago, but still a long way off the €380,000 mark at the peak of the property boom.
However, the intervention last week of the Central Bank, which is proposing to limit two key ratios — the loan-to-value and loan-to-income ratios — should help prevent a credit- driven bubble from occurring again, said Ronan Lyons, Daft.ie economist and assistant professor of economics at Dublin’s Trinity College.
“Across Leinster, and in Dublin in particular, supply shortages remain and this has helped push up values by a third in Dublin in just two years,” Mr Lyons said.
“The concern is that this supply shortage is now feeding into expectations.
“While price rises driven by shortages can be stopped by increasing supply, tackling price rises driven by expectations is significantly trickier.”
Mr Lyons said the Central Bank now needs to address the preponderance of variable rate mortgages in Ireland, and he has urged the Government to find ways of reducing the cost of building homes without sacrificing quality.
The Daft.ie report shows that prices in Dublin have experienced annual rises of between 18% in the north of the county and a staggering 29% in the city centre.
Double-digit increases have been recorded in all of Dublin’s surrounding counties — Louth 14%, Meath 15%, Kildare 19%, and Wicklow 20%.
Cork saw its property prices rise 11% and Galway by 13% over the course of a year, while Waterford city centre saw a 3% climb.
However, there are still large swathes of the country which have shown little or no increase in property values in recent quarters.
Asking prices in Limerick City have fallen over the same period by 4%, with asking prices still lower, year-on-year, in Clare, Mayo, Donegal, and Cavan.
The report also surveyed the sentiment and expectation of more than 1,000 potential buyers across the country, with respondents in Dublin saying they expect prices to continue rising over the next 12 months by an average of 12%.
This is the largest expected price rise recorded since Daft.ie began this tracking figure in 2011.
Outside of Dublin, respondents’ expectations have also heated up, with the survey showing that people expect prices to rise by around 6%.
-The average asking price nationwide is now €195,000, up from €170,000 a year ago.
- Asking prices rose by 4.2% during the third quarter of 2014, slightly down on the 5.5% growth seen between April and June.
- 9% of properties listed for sale on Daft.ie now sell within four months, compared to 39% two years ago.
- There were almost 7,500 transactions in the second quarter of 2014, compared to 6,200 in the same period in 2013 and just 5,300 in 2012.
- Just over 30,000 homes were for sale on October 1, the lowest national total since March 2007, and less than half the highest figure seen in 2009.
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