THE CENTRAL BANK’S new rules on house deposits failed to prevent property prices from rising in the first quarter of 2015, but the climb has slowed.
That is according to the latest house price survey released by MyHome.ie.
The survey found that the national mix adjusted asking price measure rose by 2.2% in the first three months – up 5.7% year on year – while in Dublin asking prices were up 2.5% and 12.7% respectively.
According to the survey the mix adjusted asking price for a house nationally is €198K while in Dublin it’s €276K. The median price in Dublin has risen 1.4% in Q1 to €299K while outside Dublin the figure has risen 6.3% to €169K.
In Dublin, the price of an average three-bedroom semi-detached house is around €200,000 more expensive than in Leitrim.
Added to that, Dublin is still the least affordable place to buy a house. The report’s affordability index shows that house price to income ratio is highest in Dublin and Mid Leinster at 5.9 and 4.9 respectively while the midlands at 2.8 and the mid-west at 3.4 looks most affordable
The author of the report, economist Conall MacCoille from Davy, said the moderation in house price inflation was a positive development and did not mark a period of sustained declines.
“A mix of factors probably explains the recent moderation in house price growth. First of all affordability was becoming stretched in Dublin. Secondly the Central Bank’s new lending rules may have reined in exuberant price expectations. Thirdly the end of capital gains tax exemptions may have inflated demand mid-year, leading to price falls towards the end of last year.”
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