2 April 2017
By David O’Sullivan
House prices rose by an average of 4.3% during the first three months of 2017, the largest three-month increase in two years, according to the latest House Price Report released today by property website, Daft.ie. This means that the national average list price during the first three months of the year was €230,000, 9.4% higher than a year previously and over €65,000 higher than its lowest point.
The annual rate of inflation in Dublin was 8.7% in the year to March, up from just 1% at the same time last year. Inflation has also increased in the other cities and in Leinster outside of Dublin. In Cork City, prices in the first three months of 2017 were 11% higher than a year previously, compared to a rise of 15% seen a year ago. The average house price is now €257,000, 57% above its lowest point. In the rest of Cork, prices in the first three months of 2017 were 9% higher than a year previously, compared to a rise of 12% seen a year ago. The average house price is now €196,000, 37% above its lowest point.
Meanwhile,in both Galway and Limerick, the average price is 16.3% higher than a year previously. In Waterford City, the increase was 13.9%. Elsewhere in the country, the average rate of inflation was 9.4%, but this varied from 16% in Longford to just 3.6% in Kerry.
The decline in the total number of properties for sale nationwide continues, with just 20,500 homes on the market in March, down from almost 24,000 a year ago. This figure is at its lowest since October 2006 and is down two-thirds (67.4%) from the October 2008 peak of almost 63,000.
Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said: “The combined effect of the tweaks to Central Bank mortgage rules and the new help-to-buy scheme has been to significantly stimulate first-time buyer demand. This is seen in renewed house price growth, particularly in and around the major cities. While there may have been a political motive to these measures, it is important now that the chronic lack of construction activity becomes the main focus for policymakers.”
Average list price and year-on-year change – major cities, Q1 2017
- Dublin City: €339,745 – up 8.7%
- Cork City: €257,005 – up 10.7%
- Galway City: €265,238 – up 16.3%
- Limerick City: €174,234 – up 16.3%
- Waterford City: €153,448 – up 13.9%