Ireland Home Prices Up Annually 6.3 Percent Nationwide in Q2
According to Daft.ie's latest Ireland House Price Report, home prices nationwide rose by an average of 6.3% in the year to June 2016.
The divide between Dublin and the rest of the country persists, with prices effectively stable in the capital - rising just 1.1% in the last year - compared to a rise of 10.2% on average outside Dublin. Compared to three months ago, there has been a slight uptick in inflation outside the capital.
The national average asking price in the second quarter of 2016 was €215,000, compared to €202,000 a year ago and €164,000 at its lowest point. In Dublin, prices have risen by an average of €94,000 - or 42% - from their lowest point in mid-2012. Outside the capital, the average increase has been €43,300, or 32%, since the end of 2013.
While prices are stable in Dublin, they continue to increase strongly in other cities. Compared to the same period in 2015, prices in the second quarter of 2016 were 11.2% higher in Cork and 14% higher in Galway. In Limerick city, the increase was 15.2%, while in Waterford prices rose by 17.4% in 12 months. Inflation outside the cities varies from 9% in Munster to 12% in Connacht-Ulster.
The total number of properties for sale nationwide recorded a rare increase between March and June. Having reached a nine-year low in March, at less than 24,000, the total number of homes for sale in June was 25,260, roughly 15% below the same month in 2015.
Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said: "While supply pressures have eased slightly in the last three months, the overall dynamic in the housing market currently is one of very strong demand pulling up prices. In Mayo and Roscommon, for example, average prices have increased by roughly 10% since the start of the year."
"The obvious exception to this is Dublin, where Central Bank rules have linked house prices to the real economy. What we are seeing in the capital is buyers seeking out good-value locations. Whereas prices are now falling in year-on-year terms in markets like Dublin 6 and South County Dublin, they are rising by roughly 5% a year in areas like Dublin 10, Dublin 11 and Dublin 12."
Average list price and year-on-year change - major cities, Q2 2016
- Dublin City: €314,311 - up 1.1%
- Cork City: €234,585 - up 11.2%
- Galway City: €236,853 - up 14.0%
- Limerick City: €153,892 - up 15.2%
- Waterford City: €138,771 - up 17.4%