Irish House Prices 2014: The average
asking price for properties outside of Dublin has risen during the first quarter
of 2014; the first quarterly rise since mid-2007 according to a report released
today by property website Daft.ie. Nationally, the average asking price is now
€177,000, up 3.5% from the same time last year and down 53% from the peak.
Meanwhile, MyHome.ie's quarterly report says the mix adjusted average asking
price nationally declined by 0.7% in Q1 - - the lowest rate of decline in over
six years - - to now stand at €188,000.
Daft.ie says prices in the capital are 15% higher than
the same stage last year, with annual increases also recorded in Cork
and Galway city centres of 2% and 3% respectively. Although experiencing
increases in the latest quarter, both Waterford and Limerick city centre prices
are down from the first quarter of last year by 1% and 6% respectively.
The total number of properties on the market in now
just over 33,000, down from a peak of 62,000 in mid-2009. In Dublin,
the number of properties available for sale is below 2,300. According to the
official Property Price Register, there were over 3,800 properties purchased in
the last 3 months of 2013 within Dublin.
Commenting on the report, economist with Daft.ie, Ronan
Lyons said: “While those based in the capital will understandably
focus on rising inflation in property prices, perhaps the more significant
development is elsewhere. For the first time since 2007, the average asking
price outside Dublin rose on a quarterly basis. This may the first indications
that a better match is being found between demand – which will be boosted by the
fall in unemployment – and supply – which has eased back considerably in the
last two years.
“This quarter also sees the addition of a measure of housing market expectations
to the Daft.ie Report. This shows that the supply of housing is perhaps the most
pressing concern for those active in the housing market at the moment. In
general, expected changes in house prices seem grounded but any further
increases in expectations, particularly in Dublin, may be a cause for concern.”
Daft.ie report [pdf]
Asking prices in Dublin increased by 1.3% in the first quarter of 2014 according
to the latest property survey by MyHome.ie - - this is the fourth quarter in a
row Dublin has recorded a price increase and puts the mix adjusted average
asking price in the capital at €244,000.
The mix adjusted average asking price nationally declined by 0.7% in Q1 - - the
lowest rate of decline in over six years – to now stand at €188K.
In Dublin the annual percentage change is up almost 4% while the national figure
is down almost 5%.
Caroline Kelleher, of DKM Economic
Consultants, who is author of the quarterly report, says the latest figures show
significant volatility in asking prices across the country and across property
The volatility in asking prices is a feature of the transition phase that is
currently underway in the market, which is being influenced by fluctuations in
stock levels and the changing expectations of sellers. Despite this volatility
the figures show the recovery in Dublin continues to gather momentum while it
has yet to become firmly established elsewhere,” Kelleher said.
“A study of transaction data in our report shows the Dublin market bottomed out
in Q4 2012 with the national market doing so in Q1 2013. However it’s clear the
recovery in house prices will not necessarily happen in a straight line and at
the same pace around the country.
instructions highlights Dublin recovery: A
separate analysis in the MyHome.ie report based on new sale instructions to the
market shows that the median asking price has increased nationally and in
In the year to Q1 the median asking price for new sale instructions in Dublin
was up 10.2% while nationally it increased by 6%. This is in contrast to new
instructions outside Dublin which continue to show an annual decline in the
median asking price of 3.2% suggesting that the national trend is being
influenced by Dublin to a significant degree.
Kelleher said it was clear new properties to market were being priced higher
then properties which have been on the market for some time and indicates
changing expectations among sellers in response to recent market developments.
A review of a sample of 2,000 transacted properties up to Q4 2013 for which
matched data was available from MyHome.ie also indicates a strong increase in
prices. The analysis shows that the mix adjusted transaction price nationally
increased by over 9% in the year to Q4 2013 while the corresponding increase in
Dublin was 16.5%.
Angela Keegan, managing director of MyHome.ie said that while the Property Price
Register was showing increased momentum in the market
it was likely that national price trends are being influenced by key urban
markets such as Cork and Galway and counties in the Greater Dublin area.
“The trends identified in new instructions and recent transactions are most
welcome. However the road to recovery is a marathon not a sprint and the return
to a properly functioning property market will only come about when we see a
substantial increase in transactions, an increase in supply and low digit
sustainable price growth” Keegan concluded.
MyHome.ie report [pdf]
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