THE average asking
price for a house in Ireland fell by 1% in the final
three months of 2014, according to the 2014 Year in
Review House Price Report released today by
Ireland’s biggest property website, Daft.ie.
This is the first time since mid-2013 that the
average house price fell in a three month period.
Despite this recent fall, the average asking price
nationwide is now €193,000, 12.8% higher than the
value of €171,000 a year ago. This compares to
€378,000 at the peak in 2007.
In Donegal, prices in the final quarter of 2014 were
almost 1% higher than a year previously, compared
to a fall of 7% seen a year ago. The average house
price is now €115,000, 57% below its peak in 2007.
The report's author, Ronan Lyons, said: “The
intention of the proposed Central Bank limits on
mortgage lending is to limit increases in house
prices by affecting both buyer expectations and the
credit available to them. It seems that, even though
the limits have not yet come into force, they have
already had some impact. For example, When asked
what they expected will happen Dublin house prices
over the coming 12 months, survey respondents in
September expected an increase of 12%. In December,
however, that figure had fallen to 5%."
Mr Lyons, who is also Trinity College assistant
Professor of Economics, added: “Restricting the
amount lent to each household is a necessary first
step to ensuring a stable housing market. The second
step is addressing the cost base, to ensure an
adequate supply of housing. With fewer than 30,000
properties on the market currently – and just 3,500
of those in Dublin – this is the challenge for
policymakers as we move into 2015.” |
