THE average cost of a home in Dublin now stands at €440,000 – exactly twice the Central Bank’s €220,000 mortgage deposit threshold, a recent survey shows.
The figures, revealed by Ireland’s Real Estate Alliance, in their Average House Price Index, shows that, after rising by 12.5 per cent in 2017, the average price in the capital has increased by just €2,000 in the opening quarter – bringing it to €440,000.
They further reveal that the average price nationally for a semi-detached house is €229,111 – a rise of 1.5 per cent on the Q4 2017 figure of €225,806.
Overall, the average house price across the country rose by 9.1 per cent over the past 12 months – indicating that the market is steadying after the 11.3 per cent overall rise in 2017.
Limerick City saw a 4.2 per cent rise, with prices increasing from €192,000 to €200,000 since December.
Selling prices were also 2.9 per cent higher in Galway City, where the typical semi-detached house is now fetching €265,000.
Agents REA McGreal Burke report a strong demand with 10 buyers for every property on the market.
Cork City registered a €5,000 (1.6 per cent) increase to €315,000, while prices remained static in Waterford City at €195,000.
The highest increases were seen in the rest of the country’s towns.
The highest annual rate of increase in the country came in Cavan Town where prices rose by €10,000 to €150,000 – up 33.9 per cent on the March 2017 figure of €112,000.
Laois has seen rises of 6 per cent in the opening quarter based on lack of supply and prices at €175,000.
In commuter counties such as Kildare, the biggest percentage rises are coming in towns such as Newbridge (2.3 per cent) where the average price is €225,000.
The REA Average House Price Index concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide to the close of last week.
The rate of increase in three-bed semi-detached home prices in Dublin has now slowed to 2 per cent over the past six months, the index reveals, compared to an increase of 4.5 per cent in the opening three months of 2017.
“The Dublin market has become quite price sensitive, even though we are seeing healthy demand and good liquidity with plenty of mortgage lending,” said REA spokesperson Barry McDonald.
“What we may be seeing, after the rapid increases of recent years, are the Central Bank mortgage lending restrictions imposing an upper level on purchasing power for some buyers.”
He added:” “There has been a 3 per cent reduction in cash buyers in the market, with mortgage approved house hunters now making up 74 per cent of purchasers, increasing the effect of the Central Bank rules on the market.
“We are seeing strong demand across the board, and homes are reaching sale agreed in just four weeks in Dublin – which is good news for both buyers and vendors.”
