Home prices rise €24k in second quarter of 2017

House prices have increased by an average of €24,000 in the second quarter of the year, with asking prices in the capital up €32,000 since the start of the year.

The average price of a three-bed semi has increased in every county bar Sligo, where prices have dropped by just over 5% to €122,500, with prices remaining static in Leitrim, Cavan, Roscommon, Longford, Laois, and Wicklow.

The latest property report from MyHome.ie, in association with Davy, shows the average price of a three-bed semi is up everywhere else, by 1.72% to €290,500 in Dublin — 37% below the peak of the boom — and in Cork, up 4.76% to €220,000 — 34% below the peak.

In Clare, prices are up 0.88% to €143,750 — 46% below the peak; in Kerry, up 3.7% to €140,000 — 42% below the peak; in Limerick, up 2.9% to €159,500 — 33% below the peak; and in Kilkenny, up 10% to €165,000 — still 48% below the peak.

Sale-agreed times have tumbled to new lows — 3.8 months nationally and 2.7 months in Dublin — and the number of €1m-plus house sales has soared to four times the rate of 2011.

Report author and chief economist at Davy, Conall Mac Coille, said the available evidence shows that the Government’s help-to-buy scheme, introduced last year, has contributed to house price inflation. He also said the cost of the 1,679 claims approved under the scheme to date is €24.5m.

“This means that the average help-to-buy cash rebate has equalled €15,000, or 5% of a €300,000 newly-built home,” he said. “Given the 7,275 applications received so far, the initial estimate that the scheme would cost €50m may now seem conservative.”

House price inflation should remain strong despite the likely abolition of the scheme in the forthcoming budget, driven by robust jobs growth, rising incomes, and competition among homebuyers, he added.

MyHome.ie managing director Angela Keegan said the ongoing lack of housing supply means houses are being snapped up quickly by desperate buyers and that competition for properties will intensify.

“There were only 21,000 homes listed for sale on MyHome in the period, down over 11% on the year,” she said.

“This means that just 1% of Ireland’s housing stock of 2m homes is currently listed for sale. In Dublin where demand is greatest, fewer than 4,000 homes, or 0.85% of the capital’s stock, is listed for sale.”

The report also shows, for the first time, that there were 638 sales last year of homes priced €1m or above, with 547 in Dublin, 21 in Cork, 18 in Wicklow, and 12 in Galway.

In Dublin, the vast majority of the €1m homes were on the southside, with Dublin 4, where 136 €1m sales were concluded, accounting for 20% of the national total.

Dublin 6, which includes Rathmines, Ranelagh, and Rathgar, recorded 100 such transactions.

MyHome currently has 545 listings for sale with an asking price exceeding €1m. In addition 221 properties exceeding €1m have recently had agreed sales.

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