House prices nationally over the last year have risen by more than €2,000 a month, according to the latest House Price Report released today by Ireland’s No.1 property website, Daft.ie.
The 4.3% increase in the second quarter of 2017 matched the increase seen in the first quarter. The national average list price during the second quarter of the year was €240,000, 11.7% higher than a year previously and over €75,000 higher than its lowest point.
The annual rate of inflation in Dublin, which was 12.3% in the year to June, now exceeds the rate in the rest of the country (11.3%) for the first time since early 2015. In Galway, Limerick and Waterford cities, the annual change in prices is even higher and is closer to 15%, while in Cork city, the rate is 9.2%. Elsewhere in the country, the average rate of inflation was 11.2%, but this varied from 7.8% in Connacht-Ulster to 13.4% in Leinster (outside Dublin).
In Leitrim, prices in the second quarter of 2017 were 4% higher than a year previously, compared to a rise of 20% seen a year ago. The average house price is now €124,000, 44% above its lowest point.
The number of properties being listed continues to rise. Over 6,000 properties were listed for sale in May, the highest monthly total since the middle of 2008. Nonetheless, due to strong demand, the total number sitting on the market remains very low, at just 22,400 on June 1st. While this is higher than three months earlier, it is 11% lower than on the same date in 2016 and roughly two-thirds below the 2008 peak.
Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said, “After two years where Central Bank rules had capped house price growth in the capital, the relaxation of those rules has helped drive prices further up. Whereas non-urban markets had driven house price growth in 2015 and 2016, Dublin again is seeing increases that are above the national average. With each passing quarter, the imperative becomes even greater to address the high construction costs that are limiting the ability of supply to meet strong demand.”
Martin Clancy from Daft.ie said, “Every minute over 1,000 property searches are being carried out on our website and apps, which gives an indication of the strong demand that is in the market at present.”
Average list price and year-on-year change – major cities, Q2 2017
Dublin City: €352,975 – up 12.3%
Cork City: €256,201 – up 9.2%
Galway City: €268,535 – up 13.4%
Limerick City: €177,199 – up 15.1%
Waterford City: €158,861 – up 14.5%
The full report is available from www.daft.ie and includes a commentary by Ronan Lyons, Assistant Professor of Economics at Trinity College Dublin and author of the Daft.ie Report.