Average asking prices for houses now €16,000 higher than a year ago

Prices in Dublin are up by 46.5% from their lowest point in mid-2012

houses

File photo: RollingNews.ie

The typical cost of buying a house has risen by nearly 8% in the last 12 months, according to new research.

The latest Daft.ie property report found that the national average asking price in the third quarter of 2016 was €221,000, compared to €205,000 a year ago.

Annual inflation has reached 7.6% nationwide, compared to 6.1% six months ago and 15.5% at the start of 2015.

In Dublin, prices are up by an average of €102,500 – or 46.5% – from their lowest point in mid-2012.

Annual inflation in the capital has increased from 1.1% in the last quarter to 5.3% now, but remained significantly below the rate elsewhere in the country (9.3%).

Prices in Cork and Galway were 10% and 12% higher respectively in the three months up to the end of September, compared to the same period in 2015.

In Limerick city, the increase was 14%, while Waterford prices rose by 16% in a year.

Average costs outside of Dublin are up €48,600 – or 36% – since the end of 2013.

Trinity College economist Ronan Lyons, who wrote the report, described the figures as a cause for concern.

"There were price increases throughout the summer in all 54 markets covered in the report, only the second time this has occurred since prices bottomed out," he said.

"Increases occurred throughout Dublin, which had seen almost two years of price stability following the Central Bank rules.

"This suggests that, while there is little risk of a credit-fuelled bubble, the underlying lack of supply is severely affecting the market."

There were just under 24,900 properties for sale nationwide in September, slightly below the June figure and slightly above the total for March.

However, compared to a year ago, it appears supply has been furthered tightened, with 14% fewer homes available.

Average house price and year-on-year change – major cities, Q3 2016

  • Dublin city: €322,934 – up 5.3%
  • Cork city: €247,448 – up 9.8%
  • Galway city: €248,791 – up 11.8%
  • Limerick city: €163,692 – up 13.7%
  • Waterford city: €147,498 – up 16.4%