Rising house prices showing signs of slowing down, but supply remains a problem

The national shortage of homes available on the market are still at the level of the crisis – but the rate at which housing prices rise finally shows signs of easing.

Property prices have increased nationally by 2.7pc in the second quarter of 2018, according to the latest House Price Report released today by the largest real estate site of Ireland, Daft.ie.

The average price nationwide during the second quarter was € 254,000, 5.6 percentage points higher than last year.

This shows that the annual rate of catalog price increase in the second quarter of this year is at its lowest level since the beginning of 2014.

Compared to their lowest level in 2013, prices increased on average by 54pc or just over 89,000 €

In Dublin, prices rose by 1.8pc between March and June, which means that the average price in the capital is now 155,000 € to that of five years ago.

The average price of homes for sale in Dublin between March and June of this year was € 374,885

In each of the other big cities, prices have risen sharply in the last three months – of 4.8pc each in Limerick and Waterford Outside major cities, prices increased by 3.2 pc during the same period, the highest increases being in Connacht-Ulster and the lowest in Munster.

number of properties available for purchase in the domestic market has increased in recent months.

In Dublin, nearly 4,800 properties could be purchased in June, almost 50% more than the year before.

Outside the capital, there were nearly 19,000 homes on the market in June – 2pc below a year ago but up 2,000 at March level.

In Dublin, the fraction of properties finding a buyer in two months is down (37pc against 50pc a year ago), while the fraction sold in four months remains high (72pc).

Elsewhere, 65pc of properties listed currently find a buyer within four months, in line with the figure of one year ago (66pc).

Commenting on the figures, Ronan Lyons, an economist at Trinity College Dublin and author of the Daft.ie Report, said: "The Irish home sales market remains strong demand and relatively weak supply." That said, there are signs – especially of the Dublin market – this new offer has an effect, with increased market availability and slowing inflation.

"Although the increase of newly built houses is welcome, it is mainly in the form of housing developments.

" Almost all the new houses needed in the country are urban apartments, so the mix of Offer remains a challenge for "Martin Clancy, of Daft.ie, said:" The interest in the real estate market remains extremely strong. We now see more than 1,000 property searches taking place every minute on Daft.ie. "

The average price of houses and the change from year to year in large cities between April and June inclusive are indicative of current trends:

Dublin city: € 374,885 – up 6.2 pc [19659004] Cork city: € 273,894 – up 6.9pc

city of Galway: € 285,277 – up 6.2pc

Limerick city: € 189,416 – up 6,9pc

Waterford city: € 172,880 – up 8.8pc

Last month there were forecasts that home prices will not reach a plateau for another three years, while efforts to increase significantly

The Dr. Kieran McQuinn, research professor at the Institute for Economic and Social Research, said that if the sharp rise in prices continues at its current rate, there would be a possibility of "bubble" in the market. [19459039HesaidthatitappearedthattheprudentialrulesontheIrishmarketcontributedhavetocontributetowar

A minimum of about 35,000 new housing would be needed in Ireland each year until 2023.

The trend in the supply of new housing has increased considerably, but the shortage of new homes

The lowest average prices for smaller houses, between April and June, were at Co Roscommon, where prices for one-bedroom apartments were only 46 000 euros.

In the same county, the average asking price for a five-bedroom detached house was only € 177,000.

On the opposite, listed real estate prices on Daft.ie in Dublin 6 were at the other end of the spectrum.

In this affluent suburb of the capital, the average asking price of a one-bedroom apartment was € 342,000, while the average price of a five-bedroom detached house in the Upscale neighborhood of Dublin was € 1,163,000. The percentage of respondents who believe that prices represent good value fell to 24pc across the country last month, the lowest ever recorded.

In the capital, only one in six respondents said that she could see value in the housing market. Some 1,000 market participants were interviewed.

This was the eighth consecutive quarter in which 15 p. 100 or less indicated that they could see value in the Dublin home market.

Sunday Independent