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HOUSES PRICES ACROSS the country are rising more than €2,000 every single month on average, according to the latest House Price Report from Daft.ie.
On a national basis, the average price of a house is €240,000 – 11.7% higher than at this stage last year.
In the last three months alone, house prices have risen 4.3% across the country.
Report author, and Trinity College Dublin economist, Ronan Lyons said that strong demand and a relaxation of Central Bank rules on deposits was contributing to the surge in prices but the high cost of construction meant that supply was struggling to keep up.
Dublin leading the way
The average house price in Dublin is higher than the national average for the first time in two years, at 12.3%.
The average price of a house in the city centre has risen sharply since last year, up 18.2% to €299,635.
The lowest rise was in the west of the country, with prices are up 7% to €297,070.
Lyons said that Central Bank rules on minimum deposits “had taken the sting out of a potential housing bubble” in recent years, which meant that Dublin house prices had previously not risen at the same rate as the rest of the country.
This has changed now, however, with the relaxing on deposit rules meaning that the minimum requirement is now just 10%.
The economist said: “This means that first-time buyers buying expensive homes have seen the biggest reduction in the deposit required.
To give an example, someone buying a property in Dublin worth €250,000 has seen the required deposit fall by just over 10% (from €28,000 to €25,000). But someone buying a property worth €660,000 has seen their deposit requirement fall by 40% (from €110,000 to €66,000).
“Therefore, we would expect the change in the Central Bank rules to have the largest effects on the most expensive markets in the country,” he said.
Around Dublin’s neighbouring counties, prices are rising steadily, but further afield in Leinster, house prices are rising at a higher rate.
House prices in Carlow and Laois, for example, rose 18% and 16.9%, respectively in the past year.
But other cities also on the rise
Outside of Dublin, houses prices in other Irish cities are rising at a faster rate.
Galway is the most expensive city outside Dublin to buy, with the average house in the city costing €268,535. This was a rise of 13.4% on the same period last year.
The rises were even more pronounced in Limerick city and Waterford city, with house prices rising 15.1% and 14.5%, respectively.
On a county by county basis, it was Longford which recorded the biggest rise by percentage, with the average house in the county now costing €128,816, up 23.5%.
The trends seen outside of Dublin would suggest that the help to buy scheme brought in by the government in the last Budget is not having the desired effect, according to Lyons.
He said: “There have simply not been enough new homes sold in the first half of 2016 for this to explain such market-wide trends, however.
The Help-to-Buy scheme would have had opposite effect across cheaper and dearer markets. Its caps were such that its impact would be greatest in the cheaper segments of the market.
Lack of supply
While the number of properties being listed continues to rise, strong demand means that the total number of properties on the market continues to be too low, the report said.
On 1 June, there were 22,400 properties listed. This is 11% lower than the amount on the same day last year, and roughly two-thirds below the 2008 peak.
Lyons concludes his analysis by saying that supply will need to be increased, and that the high cost of construction is acting as a barrier to home building in this country.
He said: “The primary focus of policy efforts in the housing market over the last 18 months has been to further stimulate demand and prices. As I have written on a number of occasions in the last year, what we need is a focus on supply and quantities.”
The country needs 50,000 homes a year, Lyons added, and said that supply has not been meeting demand since 2011.
“The principal reason why so few homes are being built is the high cost of construction,” he added.
Combined with a strategy for using vacant homes, using land better and reform of housing subsidies, it is entirely possible for this country to have a healthy housing system.
You can read the full report here.
TheJournal.ie publisher Journal Media Ltd has some shareholders in common with Daft.ie.
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They can send either of them two in the photo to Ballinamore, we’ll keep an eye on them.
They need new blood. Best of luck kids.
Like, is this totally your vehicle like.
I for one believe that thos two Gardai will live a happier lives than other gardai because men will do whatever they ask
Cos they’ll be f*** all use on the streets of Ballymun…
somebody in the department of justice has ocd with the number 5!
5 Garda units. One Garda recruit to each unit would explain the fascination with the number 5.
A week on The beat in ballymun will soon wipe those smiles away.good luck to them they’re going to need it.
Well those two,can handcuff me anytime they like.
I’d like to take down their particulars.
The one on the left looks like a bit of a plank if you ask me. I’d say she wouldn’t know her asp from her elbow.
Nice gentle posting for the lucky 5 who got Dun Laoghaire.
This is not going to be a popular statement but the Gardai have lost effectiveness by being overly feminised. The force is gender balanced in accordance with political correctness but then has to counter criminality, often violent that is 90% male. They have no credibility on the street. If you are getting the head kicked off you by a bunch of thugs, who do you want to arrive? A pair of strong agressive GAA type Gardai or two Barbai?
But as everyone here keeps saying….. Ahhh sure aren’t they lovely!!
For once David your not talking Shite!
The force is not gender balanced, there are far more male gardaí than female. The size of the garda is of little consequence nowadays as practically everyone knows how hamstrung they’ve become by the system. There’s no deterrent coming from the courts so the gouger knows he’s little chance of being locked up, even if he assaults the garda. The ombudsman is only too keen to prosecute gardaí on the flimsiest of cases so if the garda does anything to the gouger he ends up in bother, regardless of the justification. If the garda does have to get physical with the gougers, the world & his wife whips out the camera phone in order to capture the ‘police brutality’ and he or she ends up in a clickbait article here with the do-gooder mob baying for their blood.
Lugs Brannigan himself could rise from the grave to go back on the beat and it would make no difference, ‘society’ doesn’t want that sort of policing anymore.
The majority of those recruited are still male, the gender balance isn’t going to change soon. That vast majority of the time, you don’t get the luxury of deciding who gets to deal with an incident; whoever is available gets sent.
ah the guards are going to look mad young now…
She has a smile that could take away the pain,as she sprays the pepper spray into your eyes .
all the best to all of them, I hope they blend with the area and build good relationship with the public.
Congratulations to you @mdmak33…..you’ve won Miss World.
There was a time when the big tall guard was feared by kids in an area…not anymore. If you are going to have young small guards patrolling the streets then arm then fur gods sake…even a Batton or taser
They’ve always had batons & pepper spray has been issued for a few years now. There was a time when you got good jail time for assaulting a garda; now you’ll get feck all & can make a complaint against the garda for looking at you sideways, with no comeback if it turns out you were lying. Why would you fear them?
Jaysus Bán Gardaí didn’t used to look like that. Saw a young Ban Garda last year – fully made up with lipstick on while working – thought it strange.
ban gardi you can be arrested for that now!
I’m hoping the two in photos are in the online unit.
Sgt.Yates you sexist dinosaur!
There are no Ban Gardai anymore. There are Gatdai who get maternity leave and Gardai who don’t get maternity leave.
Nice.
Those five Garda gone to Portlaoise would be better off in Portarlington! that way with the officers that are already here the station could open 24/7. at the moment Port might as well not have a Garda station it’s open 9 a.m to 1 p.m then open from 8 p.m to 9 p.m outside those hours you have to ring Portlaoise guards to come over by the time they get here you could have robbed five shops and get a clean getaway
New guards should be assigned to big stations first to learn the ropes.
Doesn’t matter how many or where they’re allocated. Two weeks in their new stations and they’ll be indoctrinated into the lazy, slovenly ways of their senior colleagues.
Class2015. Started.training this year?collect 5 packets.of crisps.and become a garda ha
God you’re hilarious altogether. Any other good ones there for us?
Loads Marty
Class of refers to when you graduate. Everyday is a school day.
Looks like some one in Garda HQ done a lot of research to where the garda were needed the most.Then got there phone out Garda dived by stations = 5 with Waterford getting the short straw
hmm beautiful faces, wouldn’t mind to get arrested :P
There is no crime in Roscommon then? Where is our hero Fearless Frank Feighan? I hear hes a stand in on the Conor McGregor fight!
So Carlow is grand no need for guards no crime here? ? ?
The Garda on the left would make a great stripper if a career in the guards doesn’t work out for her. Not sure about the one on the right though.
One can always rely on some dick to demean women.
If you prefer male strippers then that’s fine I won’t hold it against you.
The figures are incorrect.
Count again Claire
It’s not the number in total, it’s the allocation.
County Claire.
Simple yet Brilliant !
Aren’t they lovely in their little hats!
More prisons needed as the Gardai are simply chasing the same people around every day, such a waste of their time. More prisons with longer sentences needed in order for the decent people of Ireland to feel safe in their homes. SF would let the existing prison population out tomorrow as they are soft on crime – they don’t have a problem with child abuse or elderly people being beaten up as they have members who have a history of the same crimes.
Mindfilirish
You need a mind flush as your brain is full of sh&t
Can either of them see over the steering wheel in the police car ???
have your say