HOUSE PRICES IN parts of Dublin have risen by more than 12 per cent this year – the biggest single increase in prices since early 2007.
The unexpectedly high uptick shows sellers have begun raising their prices following several years of caution after prices cratered following the over-inflated property boom.
However the rising prices are confined to Dublin – asking prices in the rest of the country are down almost 10 per cent compared to this time last year, according to the latest Daft.ie house price report which was released this morning.
Part of the reason for the increase in prices in Dublin is due to supply: the amount of houses for sale in the capital has dropped drastically. There was an average of 6,000 properties for sale in Dublin at any one time between 2008 and 2011, but the figure in 2013 is just over half this (3,170).
“It is likely then, that over the next 12-24 months, we may have to get used to the idea of prices rising in some places – particularly in urban areas – while they fall elsewhere,” said Ronan Lyons, Daft’s property economist.
In a sense, no-one is going to be happy: markets with falling prices are ones where sellers are furstrated and buyers are nervous about ‘catching the falling knife’.
In rising markets, buyers will – just as they did before 2008 – feel like they have less time than they would like for what is one of the most important financial decisions they will make.
The report found asking prices in south county Dublin rose 12.2 per cent in the year up to June 2013, with prices in Dublin as a whole up by 5.3 per cent. Outside of Dublin, prices are down 8.9 per cent, with Cork city seeing a drop of 6 per cent and Galway registering a decrease of 6.6 per cent.
Prices in Waterford city, which has been badly hit by the recession, dropped by 10.5 per cent in the last year. Limerick prices also dropped 10.5 per cent.
Average prices
A separate report published today found the average asking price for a house in Ireland is now €193,000.
The report by MyHome.ie also found that prices in Dublin have risen, but suggested a much smaller increase than the Daft report: it said that asking prices have grown by 1 per cent over the past year which, it said, was the first year-on-year growth in prices in the capital since 2007.
The average house price in Dublin is now €238,000, the report found, while the average amount of time a house takes to sell is six months in the capital. The average time in Limerick is six months while in Cork and Waterford the figure is ten months.
There are currently just over 41,000 properties for sale across the country – the lowest number since mid-2007.
Map showing the change in house prices (Image: Daft.ie)
Disclosure: Daft.ie is part of the Distilled Media Group. Journal Media Ltd has shareholders – Brian and Eamonn Fallon – in common with Distilled Media Group.
Read: Property prices down in May, but rate of drop slowing >
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