House prices continue rise outside capital

House prices have stabilised in Dublin but continue to grow strongly in cities like Cork, Galway, Limerick and Waterford according to property website Daft.ie.

Outside the capital, the average rise has been €37,500, or 28%, since the end of 2013. The national average asking price in the first quarter of 2016 was €210,000, compared to €198,000 a year ago and €164,000 at its lowest point. In Dublin, prices have risen by an average of €91,000 or 41% from their lowest point in mid-2012.

The figures are in the latest House Price Report released today by property website, Daft.ie which shows that compared to the same period in 2015, prices in the first quarter of 2016 were 14.9% higher in Cork, 14% higher in Galway and 18% higher in Limerick and Waterford cities.

Author of the report, Ronan Lyons, assistant professor of Economics at Trinity College Dublin, said prices continue to rise, because the rise in population is not being matched by an increase in new homes.

“Addressing the shortage of supply — in particular the high cost base on construction — must be a top priority for the new government,” Prof Lyons said.

He said action should be focused “not on trying to trying to drive prices further up, so as to stimulate supply, but rather to drive costs down so that they are in line with our incomes”.

House prices continue rise outside capital

House prices rose by an average of 5.9% in the year to March 2016, rising just 0.9% in Dublin compared to a rise of 9.7% on average outside Dublin. The number of properties for sale at any one time continues to fall. There were 8,200 for sale in Munster in April 2016, the lowest total on the market since March 2007.

One welcome development was the closer match between asking price and sale price. The average transaction price in Munster is now in line with the original list price, compared to 2.7% below a year ago.

The report also found:

  • A drop in the numbers who believe current house prices represent good value, from 59% in late 2014 to 42% in early 2016;
  • The typical prospective house-buyer estimates that their new home will cost slightly more than four times their household income;
  • 62% of properties find a buyer within four months;
  • There were almost 14,000 transactions in the final quarter of 2015, the second highest recorded since 2010.

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