According to the latest House Price Report released by Daft.ie, there has been an increase in house prices of around 2.9% nationwide in the first quarter of 2019. All fifty-four markets – 25 from Dublin, other 4 cities and remaining 25 counties – had an average price higher than the earlier quarter.
The lack of available houses and growth in demand, lead to an increase in prices in every single market for the first time since 2016 and the third time this decade. The national average price for the first quarter is up by 5.9%, which is around €15,000 from the same period last year.
The prices in Dublin are up by approximately 4% from the previous year, and the average house price is now €383,000, which is around 74% above its lowest point. The lowest price for the houses in Dublin was recorded in 2012, and since then the prices have grown at a rate of 74% or €163,000. The prices have even doubled in four of its postal districts.
Prices have also risen quite a bit in the four other major cities of Ireland. As visible, there has been an increase of 2.5% in Cork and 3.4% in Galway. Limerick observed the highest rise with 3.6% and the other cities outside grew by 2.5% on average.
The housing market has become seasonal. It has been converted to hot and cold seasonal nature due to changes in the Central Bank mortgage rules. As evident, the markets would pick up in the early January and early autumn followed by slow summer and Christmas months. Since these rules are based on the calendar year and not in a rolling year, it’s in the best interests of both lenders and borrowers to wait until January.
There has been an increase of 11% year-on-year for the number of properties available to buy nationwide. This shift has been led by Dublin where availability is up by 40% year-on-year, while outside Dublin it is only 5%.
Inflation and availability have improved a lot in Dublin as compared to the previous years. Though inflation is still above healthy levels, it cooled off a bit as compared to the previous years.
It is really difficult to predict about the future though it can be analysed through the regional differences. Dublin prices have inflated by 4.1% compared to the previous year, while the average for the rest of the nation being 7.1%. The reason for this discrepancy is supply.
There is a strong correlation between demand and supply. If there are few properties for sale at the beginning of the year, then the house prices are likely to rise in that quarter. When there were 2500 houses on the market, the prices increased by 5%, but when the available properties rose to 6000, prices fell strongly in the following quarter.
Average list price and year-on-year change – major cities, 2018 Q1 v 2019 Q1
- Waterford City: €181,948 – up 10.3%
- Limerick City: €201,301 – up 11.4%
- Galway City: €300,547 – up 9.9%
- Cork City: €282,518 – up 8.0%
- Dublin City: €383,315 – up 4.1%
Are you looking to sell your home in 2019? or looking to buy a property? Then just get in touch with us today.