House prices rose by an average of 7.6% in the year to September 2016, according to the latest House Price Report released by Ireland’s largest property website, Daft.ie.
While annual inflation in Dublin at 5.3% remains significantly below the rate elsewhere in the country (9.3%), the new figures show a change in the Dublin market, where inflation had been below 3% for a year.
The national average asking price in the third quarter of 2016 was €221,000, compared to €205,000 a year ago and €164,000 at its lowest point. In Dublin, prices have risen by an average of €102,500 – or 46.5% - from their lowest point in mid-2012. Outside the capital, the average increase has been €48,600, or 36%, since the end of 2013.
Prices continue to increase sharply in cities outside Dublin. Compared to the same period in 2015, prices in the third quarter of 2016 were 10% higher in Cork and 12% higher in Galway. In Limerick city, the increase was 14%, while in Waterford prices rose by 16% in 12 months. Inflation outside the cities varies from 7% in Munster to 11% in Connacht-Ulster.
In Tipperary, prices between July and September 2016 were 4% higher than a year previously, compared to a rise of 10% seen a year ago. The average house price is now €153,000, 20% above its lowest point.
The total number of properties for sale nationwide has been largely stable since the start of the year. There were just under 24,900 properties for sale in September, slightly below the June figure and slightly above the total for March. Nonetheless, compared to a year ago, supply continues to tighten, with 14% fewer homes available.
Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said: “The latest figures are a cause for concern. There were price increases throughout the summer in all 54 markets covered in the report, only the second time this has occurred since prices bottomed out. Increases occurred throughout Dublin, which had seen almost two years of price stability following the Central Bank rules. This suggests that, while there is little risk of a credit-fuelled bubble, the underlying lack of supply is severely affecting the market.”
Average list price and year-on-year change – major cities, Q3 2016
Dublin City: €322,934 – up 5.3%.
Cork City: €247,448 – up 9.8%.
Galway City: €248,791 – up 11.8%.
Limerick City: €163,692 – up 13.7%.
Waterford City: €147,498 – up 16.4%.
The full report is available from http://www.daft.ie/report and includes a commentary by Ronan Lyons, Assistant Professor of Economics at Trinity College Dublin and author of the Daft.ie Report.
The full report is available from the following link, but please note the embargo until October 3rd: Daft.ie House Price Report Q3 2016.