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07.00 2 Jan 2018


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House prices are expected to continue to rise in 2018 but at a slightly slower pace.

That is according to the latest report from property website MyHome.ie.

The report, which is published in association with Davy, predicts house prices will rise by 8% overall in 2018 - split between double digit growth outside the capital and a rise of 6% or 7% in Dublin.

While asking prices fell back by 1% nationally in the last quarter and 0.4% in Dublin, it says 2017 was a year of "robust inflation", with prices rising by 10.2% nationally and 11.1% in Dublin.

The average asking price for new sales nationally was €242,000 in the final quarter. In Dublin, the median price was €330,000 compared with €195,000 in the rest of Ireland.

 

Source: MyHome.ie

Report author and chief economist at Davy, Conall MacCoille, said tighter Central Bank rules should slow house price inflation in Dublin.

"Asking prices have fallen in the final quarter of each of the last five years before bouncing back in the spring and we see that pattern continuing in 2018.

"However due to the Central Bank tightening its mortgage lending rules we believe house price inflation in more expensive areas, like Dublin, will slow somewhat to around 6 or 7%.

"Homebuyers in Dublin have been taking out higher levels of mortgage debt, but with the availability of credit constrained, further price increases will also be curtailed slightly in 2018.

"However double-digit price gains are likely to continue outside the capital where the recovery began later, prices are cheaper and there is still scope for leverage on mortgage lending to rise."

Source: MyHome.ie

"Looking forward to 2018 rising house prices have now dragged all but 9% of owner-occupiers out of negative equity, a stark improvement from the 36% at end-2012.

"With greater equity in their homes, more Irish households will seek to move home, helping housing market activity".

At the end of the year the number of properties listed for sale had fallen to just 18,900.

This is a fresh record low, down 9.4% on the year - representing less than 1% of the housing stock.

While the average time to sale agreed was just 3.8 months nationally and 2.8 months in Dublin.

Full details of the report can be found here


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