House prices rise 7% in year

The average price of a house nationwide has risen by more than 7% in the last 12 months. It now stands at €247,000 — 7.3% higher than this time last year.

The latest house price report by property website Daft.ie shows that, since 2013, the average asking price for a house is 50% higher. Dublin has seen a 67% rise in prices since 2012.

The cost of an average family home ranges from €587,000 in south Dublin to €124,000 in Leitrim.

Nationally, there has been a 2% increase in the asking price in the first three months of 2018 compared to the last quarter of 2017, making the current average asking price for a home €247,000.

Prices in Dublin rose by 6.6% in the year to March 2018, compared to 8.5% in the other major cities and 8.1% outside the cities.

In Dublin, the average house price is now €368,356, a rise of 2.3% in the first quarter of 2018.

In 53 out of all 54 areas surveyed, prices rose between January and March, with Monaghan recording a small fall, and Donegal the only market to see a decrease in prices in the last year.

There was a 3% rise outside the main cities, with the largest increases in Munster. Prices rose 2.1% in Limerick, 2.4% in Waterford, and marginally in Cork and Galway.

Prices rose in all 11 counties of Leinster, as well as across Connacht and Ulster, but remained stable in Galway City and Monaghan.

Nationally, the average asking price reached its lowest point in the third quarter of 2013 — it has risen 50.3%, or almost €83,000, since then.

The final quarter of 2017 saw more than 16,400 transactions, which is the highest three-month total since data from the Property Price Register became available in 2010.

Looking ahead, the report says the expected change in house prices over the coming 12 months currently stands at 5% nationally, down from 6.6% in the third quarter of 2017. In Dublin, the expected inflation remains above 7% for the sixth quarter in a row.

Ronan Lyons, an economics professor at Trinity College Dublin and author of the report, said the reason prices are rising “is not complicated”.

“The fundamental barometer of a healthy housing system is that, where new demand occurs, new supply follows quickly,” said Mr Lyons. “This should be true for the housing system as a whole — ie, both market and social housing segments.

“But a closer look at the figures reveals just how dysfunctional Ireland’s housing system is. The growth in demand far exceeds the growth in supply. Ireland’s population is rising by over 50,000 people a year.”

“Planning permission was granted for a little over 5,000 apartments, nationwide, in 2017, and for 20,000 dwellings in total — less than half the likely demand. It is often said that the mantra in the housing market is ‘location, location, location’. For housing policy in Ireland, it needs to be ‘supply, supply, supply’.”


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