Property prices decrease for second month in a row
The cost of homes fell by 0.4% nationally in the month of February, according to the latest figures from the CSO.
Despite this fall, residential property prices remained up 14.9% on an annual basis.
In Dublin, the fall in February was even steeper, with property prices down by 0.7% in the month.
Outside of Dublin, residential property prices were unchanged in February.
Despite the monthly fall, property prices were nearly 15% higher at the end of February than they were at the same time last year.
In Dublin, prices were still 21.4% higher than in February 2014.
Residential Property Prices fall by 0.4% in February http://t.co/OmCYT2WzJL
— Central Statistics Office Ireland (@CSOIreland) March 25, 2015
Outside of the capital, residential prices at the end of February were 8.2% higher than at the end of the same month last year.
At national level, residential property prices were 38.7% lower than their peak in 2007.
Dublin property prices overall were 39.3% lower than their highest level.
Outside of Dublin, property prices were 41.9% lower than their highest level eight years ago.
The continued slowdown in the rate of house price growth seen in yesterday’s CSO figures is as expected, according to property consultants Savills.
Savills director of research John McCartney said: “On one hand it reflects a base effect. Dublin prices have been rising at double-digit rates since the middle of 2013. With base prices increasing, it simply gets harder to sustain the same percentage rate of increase.”
No real surprise as house price growth continues to ease. http://t.co/suSYN0pxQx
— John McCartney (@JPMMcCartney) March 25, 2015
However, Dr McCartney said there were additional factors at play. “With prices continuing to rise more quickly than earnings, affordability constraints are beginning to have an impact.
“This has removed some of the heat that was evident in the market in the middle of last year.”
Dr McCartney added: “Agents are now reporting that buyers are no longer in a frenzy to buy for fear that prices will run beyond their means.
Spoke with Brian Finn of RTE today about the CSO house price figures and Central Bank mortgage rules https://t.co/4AfOStbsWu
— John McCartney (@JPMMcCartney) March 25, 2015
“This is a very positive development as expectations of rapid price growth can become self-fulfilling and can quickly lead to overheating.”
In global terms, however, the rise of 16% in house prices here last year has put Ireland at the top of Knight Frank’s global house price index.
Over the year, five countries recorded double-digit price growth. Not far behind Ireland’s 16.3% rise came growth of 16.2% in Turkey.
In Kazakhstan, Hong Kong, and Lithuania prices also rose by more than 10%.
The only country to record double-digit price falls in 2014 was crisis-hit Ukraine, where the market dropped by 16.7%.
Read more of today’s news here
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