HOUSE PRICES ROSE in the first three months of the year and are expected to keep going.
That is according to the latest house price survey from MyHome.ie in association with Davy.
Having declined towards the end of 2015, asking prices for newly listed properties for sale rose by 2.1% nationally and by 0.9% in Dublin in the first quarter of the month.
This is the first gain in Dublin since the first half of 2015 and follows two quarters where prices declined marginally.
The report predicts Irish house price inflation will register another solid gain of close to 5% in 2016, with the rest of the country leading Dublin, due to affordability constraints in the capital.
The mix-adjusted asking price for new sales nationally is €220,000, an increase of €5,000 on the last three months of 2015, while the corresponding figure for Dublin is €315,000 – an increase of €2,600.
For the entire stock of properties listed for sale on the website the national mix adjusted figure is €208K, while in Dublin the figure is €290K.
The author of the report, Conall MacCoille, Chief Economist at Davy, said a key factor supporting house prices this year will be a tighter housing market.
“The stock of properties listed for sale on the MyHome website in the first quarter fell to a fresh low of 21,650, down 6% on the year. Despite popular opinion, the immediate impact of the Central Bank lending rules was to make it easier to buy as sellers anticipated the slowdown in Dublin house prices and decided to bring their properties to the market in 2015.”
Of the 48, 374 residential property market transactions recorded in 2015, just 35% (16,893) exceeded €220K. Of these, Dublin accounted for 60% or 9,987.
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