HOUSE PRICES IN Dublin and across the country rose again the last quarter, but the rate of increase has slowed down, according to the latest MyHome.ie property report.
The report – which is published in association with Davy – looks at house prices over the year up until the end of Q2 of this year.
It found that annual price inflation for homes for the period across the country was 7.2% – the slowest pace in two years.
In Dublin – where house prices are at their most expensive – the asking price inflation over the year was 6.8%, down from 11% in the previous quarter.
The median asking price for a three bed semi-detached in Dublin is now €310,000. The report also found that Dublin housing stock rose by 25% to 5,000 since last year.
The median asking prices for three beds rose in almost every county over the period covered. The only county where the asking price dropped was in Monaghan.
The median asking price for a three bed semi-detached in Monaghan was at €145,000 for the year to the end of Q2.
Commenting on the report, the author Conall MacCoille, chief economist at Davy, said that the slowdown in inflation should be welcomed, and put it down to tighter bank lending rules.
“The Celtic Tiger years demonstrated the folly of allowing rising leverage in the mortgage market to drive double-digit house price inflation indefinitely,” he said.
This time round, the Central Bank’s 3.5 X loan-to-income (LTI) threshold is preventing households from chasing prices higher by taking on excessive mortgage debts.
MacCoille said that Ireland was still in the midst of an acute housing shortage, but “unlike the past there is a more sensible debate on how to solve the problem”.
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