The average price nationwide in the second quarter of the year was €263,000, up 0.9% on the first three months of the year. Despite the slowdown in inflation, the average price nationwide is now 60% higher than its lowest point in 2013.
In Dublin, prices fell by 0.8% in the second quarter of 2019, and annual inflation is now at just 1.2%, its lowest level since early 2016. Inflation has also cooled significantly in the four other main cities, with year-on-year increases of 4.4% in Cork and between 6% and 7% in Galway, Limerick and Waterford.
Outside the cities, inflation is 3% or lower in Leinster and Connacht-Ulster, but remains above 10% in Munster. The number of properties available to buy on the market nationwide was above 24,000 in June, up nearly 3% year-on-year. This marks 13 consecutive months where availability has improved and this is being driven by Dublin and Leinster. In Munster, Connacht and Ulster, availability has largely stabilized but not yet improved.
Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie 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. Unsurprisingly, with much improved supply, buyers are no longer competing with each other as strongly in the market and inflation has, at least for the moment, largely eased off – especially in the Greater Dublin Area, where construction activity is concentrated.
“Policymakers must now turn their focus from the level of building to the mix. Construction is focused on family houses, the one segment already over-supplied compared to demographics. Other segments, in particular for smaller households, remain chronically undersupplied. As a result, prices for three-bed homes are now falling, especially in the Dublin area, but other prices for other home types are still rising.”
Commenting on the report, Raychel O’Connell, Marketing and Communications Manager at Daft.ie said, “Even with an increase of supply of New Homes on the market the rate of inflation was a staggering 10%. In a year when 16% more New Homes were available for sale, the average price still increased by €30,000. This is perhaps some indication of the success of the Help to Buy scheme which makes buying much easier for first time buyers, as they are entitled to a grant of up to €20k for a new build”.
Average list price and year-on-year change – major cities, 2019 Q2
- Dublin City: €379,365 – up 1.2%
- Cork City: €285,941 – up 4.4%
- Galway City: €304,549 – up 6.8%
- Limerick City: €201,952 – up 6.6%
- Waterford City: €183,805 – up 6.3%