House prices on the up -- except in the capital

Clodagh Sheehy

THE housing market is in recovery, even though prices fell again in Dublin last month.

That is the opinion of experts who believe that the property market is finally at the bottom.

Prices nationally rose by 0.5pc in August, the largest increase since just before the economic collapse in 2007.

However prices in Dublin continue to fall overall, although estate agents insist prices have risen by as much as 4pc since March in some areas.

Last month was the second in a row for house values to increase, according to the latest CSO figures, which are based on mortgage draw-downs.

More accurate figures are expected within days, when the new property register is published by the Property Services Regulatory Authority. This will give the sale price and location of every home sold since January 2010.

Economists say it is too early to conclude house prices will keep rising, but most agree that they have stopped falling.

Tentative

Dublin prices are now 56pc of what they were at the height of the boom, with the average house changing hands for €184,000.

Apartments in the city have been even harder hit, with a 63pc collapse in price.

In the rest of the country there was a rise of 1.3pc in residential prices in August, with the average house selling for €144,000, down 46pc since the peak of the boom.

Davy Stockbrokers believe prices may have fallen even further. They suggest an overall drop of 60pc since 2007, compared to the CSO calculation of closer to 50pc.

Goodbody Stockbrokers' economics expert Dermot O'Leary said there were tentative signs of stabilisation in the market, but he was surprised that Dublin prices were still falling.

"The stability that seems to be emerging is welcome."

csheehy@herald.ie