Is the worst over? First annual increase in house prices since 2008
PROPERTY prices have recorded their first annual rise for more than five years.
In the year to June residential property prices at a national level increased by 1.2pc, the Central Statistics Office said today.
This is the first annual increase since January 2008.
It has prompted hopes that the worst is over for the housing market here which has endured the second worst housing collapse in the world.
Today’s news of an annual rise in the year to June compares with an annual rate of decline of 1.1pc in May and a drop of 14.4pc in the 12 months to June last year.
In Dublin residential property prices grew by 1.7pc in June and were 4.2pc higher than a year ago.
Dublin house prices grew 1.4pcin the month and were 3.6pc higher compared to a year earlier.
Dublin apartment prices were almost 10pc higher when compared with the same month of 2012.
Meanwhile, house prices are up 15pc over the last year, one of the country's leading estate agents has said.
DNG has said that it recorded growth in asking prices every quarter since June last year and estimates that almost two thirds of buyers in the first three months of this year were paying cash.
The agency said it has seen the price of second hand homes in Dublin increase by €37,500 over the last year.
The south of the city has seen the biggest recovery in prices, according to DNG, with an annual increase of 16.2pc, but the northside properties on the agency's books are also up 16pc.
"This reflects the fact that the most expensive priced property is located on the south side of city and which rose in value the most in the boom consequently fell the quickest in the crash," DNG said.
Keith Lowe, DNG chief executive, said that while this year will be seen as a turning point for house prices, Ireland now has a two-tier property market between greater Dublin and the rest of the country.
"It should be pointed out that the price rises are rising from a very low base as they fell so rapidly in the capital," he said.
"House prices in a number of the most sought after north and south side suburbs have seen stronger gains.
DNG puts the house price rise in Dublin at more than 1pc a month.