Dublin house prices are now rising by €5,000 p/m Keane Thompson believes.
Our latest figures suggest that house prices in the Irish capital have risen by 23 per cent in the last 12 months as demand continues to exceed supply. Our figures have also indicated that on average, the prices in Dublin rose by 8.9 per cent during the first quarter of this year, which is the seventh consecutive quarterly rise.
These rising house prices might make us feel more financially secure, but this rise in wealth has had zero impact on the economy as a whole.
Why rising property prices are bad?
The average resale price of a Dublin house now stands at €329,719 (as of 2nd April 2014), reflecting an annual increase of €62,000 or €5,000 each month. Entry-level prices have grown the most at 12.9 per cent in the first quarter of 2014. A huge demand for houses and a severe lack of supply in the property market is continuing to drive prices up.
The rising rents and the creation of an addition of 20,000 new households annually have all contributed to the increasing house inflation. Although residential property prices remain 50 per cent below their peak, there has been a 36 per cent increase on average since the market low point in early 2012. There is a realignment of house prices in Dublin, and this is good news for anybody who purchased a house in the greater Dublin area in the last 18 months and for those in negative equity. There has also been a significant increase in the availability of mortgage finance and lenders. We at Keane Thompson predict further market recovery this year in Dublin and in a few surrounding urban areas around Dublin
An introduction of specific measures and following the United Kingdom’s structure, including a new homes grant or tax credit for buyers of new houses, to support the battered housing building industry. There has been two property price surveys from Daft and MyHome which have indicated recovery in the Dublin property market continued to gather momentum. Yet, these websites have given contrasting displays of what was happening outside of Dublin in their asking-price reports for the first quarter of 2014.
MyHome’s latest property barometer suggested asking prices in Dublin rose by 1.3 per cent to €244,000 in the first quarter of this year, the fourth consecutive quarterly rise.
In contrast, it found prices nationally fell by 0.7 per cent to €188,000. However, this was the lowest rate of decline in more than six years.
Figures from Daft found the average asking price for properties outside Dublin rose 2.3 per cent during the first three months of 2014, the first quarterly rise since mid-2007, ending a run of 26 quarters of falling values outside the capital.
The website’s latest house- price report shows average asking prices in Dublin rose by 5.7 per cent during the same period.
Nationally, the average asking price was now €177,000, up 3.5 per cent on the same period last year but still 53 per cent down on the market’s 2007 peak.