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Mark Stedman/Photocall Ireland

Property prices down in May, but rate of drop slowing

The most positive signs are in the Dublin market, with homes changing hands for 1.4 per cent more than in the same month last year.

THERE WAS A 1.1 per cent decrease in property prices across the country in the 12 months up to the end of May this year, according to the latest stats from the CSO. That compares with a decline of 15.3 per cent in the previous year.

However, there was a slight increase in May alone, with prices growing by 0.3 per cent. An  increase of 0.8 per cent was recorded in April.

Dublin outperformed the rest of the country last month, with a growth in prices of 0.5 per cent. Homes were changing hands for 1.4 per cent more than in May 2012.

Outside of the capital, the market grew only marginally – with prices up just 0.1 per cent compared to the same month last year.

Reacting to the figures, David McNamara of Davy Stockbrokers said there were some positive signs in the market, after the expiry of mortgage interest relief at the end of 2012 depressed trade in the first quarter of the year. He said:

Stripping through the volatility over recent months points to a stabilisation in property prices. The index in May is at the same level as it was in July of last year, interjected by swings in the index at the turn of the year.

Constrained mortgage lending and an increased supply of repossessed homes mean the outlook for prices is uncertain, but improved affordability and rising rents may underpin house prices going forward.

House prices in Dublin are now down 55 per cent compared to the peak of the housing boom in early 2007, with the national index down by 50 per cent in the same period.

Read: This man says he’s on hunger strike to oppose the property tax >

Photos: Most expensive house in America up for sale priced €145 million >

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27 Comments
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    Mute DVS VIC
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    Jun 28th 2013, 6:15 PM

    Property prices need to fall so the average salary can buy the average home. Prices are still about 6 or 7 times average salaries. Need to be 2.5 so people don’t have to borrow crazy amounts

    62
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    Mute CD
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    Jun 28th 2013, 7:57 PM

    Mortgage market needs strict regulations to keep property prices tied to reality. Such a step faces two major hurdles. 1. Govt is biggest property owner in the state and needs prices to rise to get a return on the initial investment and 2. Thousands of voters are in negative equity and need prices to rise to get them out of the hole they dig for themselves. We’ll face these problems again, wait and see.

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    Mute Karol Doran
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    Jun 28th 2013, 8:18 PM

    I am in negative equity, and I did not dig this hole for myself, it was dug for me.

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    Mute Tony Daly
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    Jun 28th 2013, 8:32 PM

    @ DVS VIC, it is good to read a sane and sensible comment about Irish residential property values. There is no economic interest in maintaining residential property prices at an excessive level.

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    Mute CD
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    Jun 28th 2013, 8:39 PM

    Karol you can tell yourself whatever you need to in the confines of your heavily mortgaged home but out here in the real world we deal in a little thing called reality.

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    Mute Karol Doran
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    Jun 28th 2013, 8:45 PM

    You’re an idiot. I bought my home at market value and then the market collapsed because of the banking crisis. I’m the one living in the real world.
    Go back to sleep.

    10
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    Mute Mal
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    Jun 29th 2013, 9:58 AM

    I also, am another person who invested in a home at a reasonable rate. The mortgage the bank offered us was ridiculous, we analysed it based on the banks professional advice, we asked them about potential crashes and we were assured many, many times that we could handle a significant crash based on our current situation. We accepted significantly less than we were offered.
    We worked well within our means. We also ended up in a bad way, not because of anything we had done, but because of the bank guarantee and the resulting tax increases.
    Things crept up on us. First it’s little things like needing to get nappy’s for the baby on the credit card the week before pay day. You have no idea how this stuff creeps up on you, then one day you realise you’re f**ked.
    It happens more easily than you can imagine; CD you have no idea what you’re talking about.

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    Mute CD
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    Jun 29th 2013, 10:18 AM

    Which one of us is crippled with a mortgage on a house that is in negative equity? I would suggest I know enough…

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    Mute Mal
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    Jun 29th 2013, 10:32 AM

    Your arrogance says a lot about you. I hope you, your family or friend never have to experience this type of situation at the expense of others.
    Certainly I’m not crippled. We got on top of it left Ireland, halved our income in the process but still have a better lifestyle than in Ireland; while renting our new home AND paying our mortgage in Ireland.
    How does that make sense??? yet it’s true. Ireland is a screwed up place at the moment, and yes, many people have ended up trapped through no fault of their own. I just don’t understand why people aren’t rioting on the streets over this.
    You have no idea.

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    Mute CD
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    Jun 29th 2013, 11:01 AM

    I can’t hear the ‘my banker told me it would be fine’ line and not think of a gambler complaining when the horse his bookie told him was a cert falls at the first.

    2
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    Mute Mal
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    Jun 29th 2013, 1:06 PM

    Absolutely if you’re speculating on property, not so if you’re buying a home to raise a family.

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    Mute Karol Doran
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    Jun 28th 2013, 5:55 PM

    As someone in negative equity, I welcome any increase in house prices however small. Long may it continue.

    44
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    Mute GatheringYourMoney
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    Jun 29th 2013, 11:18 AM

    I wonder what effect the imminent 200,000 evictions/repossessions will have on this?

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    Mute Dave Gorman
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    Jun 28th 2013, 6:19 PM

    Once again an increase in house prices is not necessarily a positive thing.

    41
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    Mute Declan Hickey
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    Jun 28th 2013, 7:14 PM

    Wow guess I should re-mortgage get the 132-D car, head off to New York shopping and wipe my arse with the left over cash.
    Who does “report” benefit? Or is a panic trigger to get people to buy?

    40
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    Mute richardmccarthy
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    Jun 28th 2013, 10:03 PM

    What you do with your rear end is of no interest to us.

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    Mute John Murphy
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    Jun 28th 2013, 6:54 PM

    Jesus, have we not had enough people looking at property prices as if they are going to be the savior of our country and commenting on every blip up or down?. The bottom line is that we should be concentrating on problem at hand and getting a lynch mob together. The government and every think tanks obsession with property got us where we are today.

    38
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    Mute murphy 11
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    Jun 28th 2013, 6:25 PM

    Thought it was CCTV from crime call before I read the heading

    35
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    Mute R Neuville
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    Jun 28th 2013, 6:35 PM

    Mortar was invented in 1794 by Joseph Aspdin.
    It is sand cement and water.
    There is NO PLATINUM in it.

    28
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    Mute Bobby Murray
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    Jun 28th 2013, 7:21 PM

    Mortar is made up of sand, cement and LIME!

    4
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    Mute Tommy Gunz
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    Jun 28th 2013, 6:10 PM

    You know you’re struggling to make a point when the second differential is wheeled out.

    26
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    Mute Cpm
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    Jun 28th 2013, 6:34 PM

    Your headline is misleading. If I understand the article correctly there was in fact an increase in may, but there was a decrease in the previous 12 months.

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    Mute James
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    Jun 28th 2013, 6:57 PM

    Looks like ur man is going to rob the shop

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    Mute Tony Daly
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    Jun 28th 2013, 8:05 PM

    Increasing LPT, water charges, declining incomes, the second banking crisis and the economics of austerity will drive down residential property prices much further.

    When you add the over supply of repossessed homes, the fright caused to others who witness repossessions and the recession gets worse, this will accelerate the decline.

    We are looking at a double dip in residential property prices.

    19
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    Mute richardmccarthy
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    Jun 28th 2013, 9:58 PM

    So an increase in house prices is again seen as possitive,but for who, the seller,who makes more money,and those selling the property,ie agents,but its not good for the buyer of property,it dont bother me either way if the price goes up or goes down,like a lot of people i never saw my house as a means to make money,just a place to call home and chill out,of course its a lot easier to do that when its mortgage free.

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    Mute Lamb
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    Jun 29th 2013, 1:18 AM

    Houses are still overpriced and taxes are still increasing. The increase in house prices is just fuel for future negative equity as the economy slows again.

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    Mute Tony Daly
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    Jun 28th 2013, 9:10 PM

    Solidarity with the weak; contempt for the strong.

    4
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