Updated 11.00
Asking prices for houses have risen nationally, for the first time in eight years.
According to MyHome.ie, the national average is up by 1.3% between March and June - with Dublin up by 4.5%.
The report's authors say that while the recovery in national prices is encouraging, the gap between Dublin and the rest of the country is continuing to widen.
Senior economist with DKM Economic Consultants, Caroline Kelleher, wrote the report. She told Newstalk's Breakfast property market trends are now on a par with the height of the boom:
Angela Keegan is the Managing Director of MyHome.ie:
Myhome's findings
- Property recovery gains momentum with asking prices in Dublin increasing by 4.5% in Q2 2014
- This is the capital’s fifth consecutive quarter of positive growth
- Nationally, average asking prices are up 1.3%
- This is the first national increase recorded since the peak of the market almost 8 years ago
- Mix adjusted asking price nationally is €190K versus €255K in Dublin
- Supply constraints in Dublin drive further price growth
- Figures on new instructions in capital show the median asking price is up 7.4% in Q2
- Price rises in Dublin and other key markets are likely to continue for some time
Report author Caroline Kelleher from DKM Economic Consultants said that while the recovery in national prices was encouraging, the stronger price growth in Dublin means the divergence between the capital and country is continuing to widen.
"Focusing on new sale instructions to the Dublin market, we see that the median asking price has increased 7.4% in Q2. This clearly reflects rising expectations among sellers in the current market."
Myhome.ie has produced this graphic showing sale prices for 3 bed semi detached houses around the country, the most desirable of properties
In addition an analysis of transacted properties up to Q1 2014, for which matched data is available from Myhome.ie, shows that transaction prices in the year to Q1 2014 were up 20% in Dublin and 13.6% nationally which is in line with CSO trends.
"Supply constraints are clearly a key factor in Dublin and other key markets and these would appear to be driving the current price increases. Given the time lag in addressing supply issues it is likely prices will continue to rise in these areas for some time to come."
Meanwhile, Angela Keegan - Managing jDirector of Myhome.ie - said, "While the stock situation in the city did improve by 20% in Q2 this was due to seasonality more than anything else and given the projected low number of new builds it is clear affordability in Dublin is set to deteriorate further in 2014. Addressing supply issues where they exist will be key if we are to return to a normal functioning property market”.
