House prices in Cork rise, but there is a slowdown in sales

The average price of houses in Cork rose during the first half of 2016, although there was a slowdown in the number of sales in the property market.

An analysis of the Residential Property Price Register (RPPR) shows that transaction levels for the first six months of the year in Cork were down almost 5%.

A total of 2,239 full-price sales were recorded between January and June 2016 — 116 fewer than in the same period last year.

However, property prices in the county have continued to rise, with median prices in Cork up €12,500 to €172,500 — an annual increase of 7.8%.

This development ranks Cork as the fifth most expensive location for housing in the Republic, after Dublin, Wicklow, Kildare, and Meath.

The cost of housing in the capital, where there is an acute shortage of accommodation, rose by 13% in the first half of the year — up €35,000 to €297,000.

That is the highest level for Dublin prices since the register was first compiled in 2010.

Prices in Cork still remain considerably below their first-half yearly peak in 2010 when they averaged €230,500.

There was a slight rise in the number of new homes coming on the market in Cork in the first six months of 2016.

The figure shows there were 328 homes sold at a median price of almost €203,000.

The value of all properties — new and second-hand — sold in Cork over the period reached €455.1m.

That is up from €424.6m in the corresponding period in 2015, and it equates to an annual increase of just over 7%.

Nationally, the overall property market mirrored the scene in Cork, with prices up in almost every county.

However, the statistics show most regions experiencing a slowdown in the level of activity.

A total of 20,018 full-priced sales were recorded between last January and June, compared to 21,561 in the corresponding period in 2015.

Property experts claimed controversial new mortgage lending rules introduced at the end of 2014 have restricted many potential first-time buyers from entering the market.

The analysis is based on full-price sales recorded on the RPPR, with 13.5% added to the price of new homes to allow for Vat, and to indicate the true cost of such properties.

The cheapest housing in Ireland is now found in Roscommon where average prices so far this year were €64,000.