Sharp rise in homes up for sale offers hope to buyers
HOUSES are coming on to the market at a rate not seen since 2008.
Hopes that there might be some relief in the supply and demand crisis in Dublin have been raised by new figures showing that 6,000 homes were put up for sale in the first half of the year.
Over 14,000 properties were listed for sale between April and June, with a total of 24,000 homes coming to market since the beginning of the year.
Keys are changing hands more swiftly as 59pc of properties are now sold within four months, compared to 45pc a year ago.
The number of transactions, has also taken a dramatic upturn in the capital, with almost 30pc more transactions than a year previously, representing the 10th consecutive quarter of growth in the number of property sales.
However, the modest increase in supply has done little to stall the rise of house prices. The national average asking price rose by 5.5pc, the largest quarterly rise since 2006, according to Daft.ie.
The average asking price now stands at €187,000, compared to €171,000 a year ago.
The biggest rises have understandably taken place in Dublin, reaching an increase of 21pc in the last year, with periphery counties Meath, Kildare, Wicklow and Louth experiencing increases of between 6pc and 13pc.
Others parts of the country, such as Galway and Cork, had more modest increases of 5pc and 2pc respectively, while Limerick and Waterford cities experienced overall decreases of 9pc and 4pc respectively.
Transaction prices in these areas have also fallen; the average prices across Munster, Connacht and Ulster were up to 15pc lower in the second quarter of 2014 than a year previously.
In Dublin, just one in five buyers now believe house prices represent value for money, a dramatic fall from late last year when that figure stood at 42pc.
A survey as part of Daft.ie's latest house price report found that Dubliners expect prices to rise a further 6pc over the coming 12 months.
Buyers nationwide are also expecting to feel a greater pinch, with the figure rising from 1pc to 2pc.
Economist Ronan Lyons said that despite the thousands of new properties on the market, there are still not enough dwellings relative to families in Ireland's urban areas, which could keep pushing prices up.
Mr Lyons said: "If price increases are going to ease, you would want to see a significant increase in property numbers coming on to the market.
"Hopefully we'll see a second and a third quarter of that. If we don't see enough, prices will continue to rise."