Cost of Dublin houses falling by €4,500 per month since March

The cost of second-hand houses in Dublin has fallen by an average of €4,500 over the past three months.

A study by the Real Estate Alliance (REA) has found that the average house price for a three-bed semi-detached house in the city now stands at €433,000.

This is the second consecutive quarter fall (-1%) since the end of March, and a 2.2% decrease compared to June 2018.

“Wherever we have new homes on the market, they are definitely having an effect on prices in the existing market as they operate in their own price structure, with buyers prepared to pay a premium for A-rated properties,” said REA spokesperson Barry McDonald.

The average semi-detached house nationally now costs €236,028, a rise of 0.05% on the Q1 2019 figure of €235,898.

Overall, the average house price across the country rose by 1.54% over the past year - a decrease on the 2.96% recorded to March - and an indication that the market is continuing to steady after an 8% overall annual rise to June 2018.

The report said increased availability of new homes has had a suppressing effect on prices in some commuter areas such as Kildare, north Wicklow and Meath.

Prices in cities outside Dublin were "relatively static" with no change in Limerick and Galway due to "an increase in supply and new home developments".

Waterford City reported a quarterly increase of 2.4%, with tightening supply rising prices to €215,000, up €5,000 from the end of March.

Cork City showed a slight rise of 0.8% to €320,000 with agents REA O’Connor Murphy anticipating a full year increase to 3%, in spite of an increase of new homes developments in the area.

The price of the average three-bed semi in County Cork rose by 3.3% in the last three months, according to a national survey carried out by Real Estate Alliance.

County Cork prices rose by 9.8% to €174,000 in the past year, the REA Average House Price Survey found.