Housing prices nationally rose by 5.5% during 2018, according to the latest House Price Report released today by Ireland’s No.1 property website, daft.ie. The average price nationwide in the final quarter of the year was €254,000, down 1.1% on the figure for the third quarter. The annual increase of 5.5% (€241,000 was the average asking price for Q4 2017) or just over €1,000 a month, was significantly smaller than increases of between 8% and 9% seen in 2015, 2016 and 2017 and marks the lowest year-end inflation rate since prices bottomed out in 2013.
In Dublin, prices rose by 2.9% during 2018, compared to an increase of 11.7% in 2017. In the other cities, however, inflation in housing prices in 2018 was comparable to 2017. Prices in Galway city, prices rose by 6.3% compared to 8.1% a year earlier. Inflation in Waterford city held steady at 8.6%, while in Limerick inflation picked up – increases of 9.8% in 2018 versus 6.9% in 2017.
In Cork City, prices in the final quarter of 2018 were 6% higher than a year previously, compared to a rise of 5% seen a year ago. The average house price is now €276,000, 68% above its lowest point.
In the rest of Cork, prices in the final quarter of 2018 were 6% higher than a year previously, compared to a rise of 8% seen a year ago. The average house price is now €220,000, 54% above its lowest point.
The number of properties available to buy on the market nationwide rose by 10% during 2018. There were over 23,500 properties for sale in December 2018, compared to 21,200 a year earlier. This is the first year-end increase in availability in a decade. Whereas earlier in the year the increase was being driven entirely by Dublin – where availability is up 40% – better availability has now spread to other parts of the country, including other cities, and the rest of Leinster and Munster.
Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said: “During the 2000s bubble and crash, the laws of supply and demand were secondary in the housing market to credit market shocks. Not least because of the Central Bank’s mortgage rules, the market this decade has returned to the more fundamental drivers of supply and demand. Since 2013, demand has been strong but supply weak. The increase in homes being built – especially estate houses – in the last 18 months, though, has helped cool down inflation, in particular in the Greater Dublin area, where construction activity is focused. The hope for the housing system is that the building of new homes continues to increase, and to spread to other urban areas. ”
Martin Clancy from Daft.ie said: “Interest and demand in the property market continues to grow. We are now seeing over 1,000 property searches taking place every minute on Daft.ie.”
Average list price and year-on-year change – major cities, Q4 2018
- Dublin City: €370,472 – up 2.9%
- Cork City: €275,703 – up 5.8%
- Galway City: €290,528 – up 6.3%
- Limerick City: €194,214 – up 9.8%
- Waterford City: €174,879 – up 8.6%
The full report is available from http://www.daft.ie/report and includes a commentary by Ronan Lyons, Assistant Professor of Economics at Trinity College Dublin and author of the Daft.ie Report.