Monday 22 July 2019

House prices slowing due to better supply

Louth is the only county to have show a decline in house prices according to the latest Sales Report released last week.

The survey shows that in Louth, prices in the second quarter of 2019 were 1% lower than a year previously, compared to a fall of 3% seen a year ago. The average house price is now €215,000, 38% below peak levels.

Louth also showed the biggest increase of newly constructed homes coming on the market with 440 properties, representing a 90% year on year increase.

Average prices fell across one bedroom apartments, which at €92,000 showed a decrease of 2.3%, two bedroomed terrace were down 3.7% at €119,000, while the biggest decrease was for three bedroomed semi-detached homes, which fell by 6.4% to €159,000.

The market for larger properties remained stronger with the average price for a four bedroomed bungalow up by 0.04% to €315,000 while the price of a five bedroomed detached house jumped by 4.25% to €347,000.

Natationally, the rate of inflation has cooled, with a result that while house prices in the second quarter of 2019 were 3.7% higher than a year previously, it represents the lowest rate of inflation since late 2013,

However, despite the slowdown in inflation, the average price nationwide is now 60% higher than its lowest point in 2013.

The number of properties available to buy on the market nationwide was above 24,000 in June, up nearly 3% year-on-year.

Ronan Lyons, economist at Trinity College Dublin and author of the Report, said: 'The steady improvement in construction activity is finally converting into housing market outcomes. More properties were put up for sale in May than in any single month since early 2008.

The Argus