Double digit annual growth in asking prices in Ireland expected to continue in 2018
While asking prices have continued to rise in Dublin, albeit at a lower rate, the growth rate paused in the rest of Ireland in the third quarter of 2017, the latest house price report shows.
The mix-adjusted price on newly listed properties in Dublin rose by 1.6% and is up 11.8% on the year while nationally prices rose by 0.4% and are up 8.9% year on year, according to the data from MyHome.
The data also shows that the mix adjusted asking price for new sales in Dublin is now €366,000, an increase of €39,000 on this time last year. The corresponding figure nationally is €253,000, an increase of €21,000. Newly listed properties are seen as the most reliable indicator of future price movements.
For the entire stock of properties listed for sale prices rose 1.7% in Dublin and 1.6% nationally. The national mix adjusted figure is now €228,000 while in Dublin its €319,000.
The author of the report, Conall MacCoille, chief economist at Davy, said the acceleration in asking prices which began in late 2016 has continued through 2017 and is likely to continue through 2018.
‘At the start of the year we predicted double digit growth in house prices for 2017 but due to the strength of asking price inflation in the third quarter we are predicting that double digit inflation is also likely to persist through 2018,’ he explained.
He pointed out that there are a number of reasons why house prices are rising so strongly and these include the lack of supply, the economic recovery and the fact household incomes are now rising by 2% to 3% per annum.