House prices rose 12.4% in May, but growth rate slows

House prices in Ireland jumped 12.4 percent at the end of May, but the growth rate slowed from the previous month, according to new figures.

The Residential Property Price Index, published by the Bureau of Statistics signaled a year-over-year slowdown in May compared with the April figures, where prices rose 13 , 5%.

In the capital, residential property prices rose 10.7% in May. In this number, house prices rose by 10.3% and apartments increased by 13.5% over the same period.

The highest increase in house prices was observed in Dublin, where it stood at 14.6%. The lowest growth occurred in southern Dublin, where housing prices rose 6.6%.

Prices for residential real estate in the rest of the Republic increased by 14.1% between May and May. House prices outside Dublin increased by 13.7% over the period. Prices for apartments outside Dublin increased by 15.5%.

The West Central region recorded the fastest price growth, with house prices rising 22.1%. The border region posted the slowest rate of price growth as home prices rose 3.7%.

Overall, the national index is 20.4% lower than its highest level on the eve of the financial crash of 2007.

Prices for residential properties in Dublin are 22.5% lower than their peak in February 2007, while Dublin is 25.5% lower than its peak of May 2007.

Since the low point in early 2013, prices have risen nationally to 77.7 %.

In Dublin, prices climbed 91.9% from their February 2012 low, while outside the capital they were 71.4% higher than the troughs.

Alan McQuaid, Merrion Capital Economist, stated that "

" The 2018 budget focused on measures / initiatives that should help alleviate problems, but unfortunately, things will not change overnight, "he said.

"But at least the government has recognized that something dramatic must be done and sooner or later." However, until the measures pbad, prices for residential real estate will continue to rise, although this is anecdotal evidence suggests that real estate price growth has begun to dampen , especially in Dublin.

"Nevertheless, we continue to believe that house price growth will remain positive from year to year in the immediate future, with the largest increase this year probably coming from outside the capital, the asking price for houses in more expensive areas progressing more slowly. "

M. McQuaid said that changes to the rules of the Central Bank Ireland mean that in more expensive areas, the upward trend in real estate prices will not be as pronounced.

"Previously, up to one-fifth of mortgages could exceed a loan-to-income ratio of 3.5," he said. "But it gets even tighter in 2018 with only 10 percent of traders allowed to break that rule."

"The allocation remains unchanged for first-time buyers.As a result, Dublin's prices will be out of reach for a greater number of borrowers, while in other areas where buyers will not need to borrow as much, prices will experience stronger growth. "