Slowdown in house price rises forecast
Today fresh data from Sherry FitzGerald is expected to indicate that house price growth has slowed in contrast to Permanent tsb figures released on Monday.
These showed a 1.7% increase in prices in May, up from the 1.3% recorded in April and March’s 1% figure.
Permanent tsb figures imply an increase of 14.1% nationally for the 12 months to the end of May.
Sherry FitzGerald chief economist Marian Finnegan said the Permanent tsb figures reflect actual mortgage drawdowns and lag what is happening in the market place.
“We expect a slowdown in the increase in prices in the second half of the year,” she said.
And the latest figures from Dublin auctioneering firm Douglas Newman Good indicate that while the price of the average home in Dublin increased by more than €21,000 since January, the rate of price increases in second hand residential property continued to slow during the second quarter of the year.
The DNG House Price Gauge recorded an increase in the average price of Dublin second hand property of 2.1% during the three months to June, taking the average price in the capital up €6,755 from €325,108 at the
end of March 2003 to €331,863 at the end of June.
As returns on equities appear to be on the rise and property prices growth slowing a major battle for investor cash is being waged by auctioneering firms and stockbrokers.
NCB Stockbrokers recently reported that the rapid rise in house prices is set to stop or even decline.
In a detailed study, The Irish Housing Market & Credit Growth in Ireland, NCB economists Eunan King and Dermot O’Brien said that a softening in the rental sector could help stabilise or push house prices down.
On the real estate front, Douglas Newman Good economist Paul Murgatroyd yesterday warned potential purchasers not to put off purchasing decisions in the hope that prices will fall significantly in the coming months.
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