Latest figures show slowdown in rate of increase in house prices

The average cost of a home rose by 5.6% across the country in the year to June

Latest figures show slowdown in rate of increase in house prices

File photo of an estate agent in Dublin city where many of the houses have been sold | Image: Sam Boal/RollingNews.ie

House prices are continuing to climb, new figures show - but the rate of price increases has slowed.

The latest Daft.ie report shows the cost of a house rose by 5.6% in the year to June.

While that figure is said to be "well ahead of inflation", it also represents the lowest rate of inflation in almost four years.

The latest House Price Report shows that prices nationally rose by 2.7% during the second quarter of 2018.

The average price nationwide during the second quarter was €254,000, which is 5.6% higher than a year ago.

However, compared to their lowest point in 2013, prices nationwide have risen by an average of 54% - just over €89,000.

In Dublin, prices are now up 70% compared to their lowest point.

Nationwide, the least expensive houses are in Leitrim and Longford, while the most expensive can be found in south Dublin city and county.

In terms of prices, economist Ronan Lyons says the increase in construction of new homes is having an impact.

He observed: "With construction increasing and construction that is taking place for homes for sale, not homes for rent... the impact is going to be greater in the sale market.

"In the country it had been seven or eight years of declining availability, albeit from a very high level in 2009-10. Your basic economics would tell you that as supply comes on to meet demand, that the upward pressure on prices would go or would at least decrease - and that's what we're seeing in the market at the moment."