Asking prices for houses now at €253,000 STREET WHERE PRICES ‘ARE UP 23%’

ASKING prices for homes being put up for sale have risen by €39,000 in Dublin and €21,000 nationally in a year, according to a report.

The average asking price for newly listed houses in the capital is €366,000, a rise of €39,000 in the space of 12 months. Nationally the average is €253,000, up €21,000.

Factors for the rise include the lack of houses for sale – with fewer than 21,500 homes for sale on the market, a figure which is around a fifth of the normal amount.

Economist Conall MacCoille, author of the myhome.ie report, said the double-digit inflation in asking prices is likely to persist into 2018 .

He said: ‘There are a number of reasons prices are rising so strongly: these include the lack of supply, the economic recovery and the fact household incomes are now rising by 2% to 3% per annum.

‘The key factor has been the mortgage market. The average loan drawn down by first time buyers in the last quarter was up 9.4% in the year to €200,000, from €183,000 in mid-2016.

‘With ever more desperate buyers seeking larger loans as they compete for the few properties listed for sale, this trend is set to continue and to ensure inflation remains at double-digit levels.

‘Measures to boost supply have had limited results so far. Neither will the crisis be solved by tax incentives or subsidies for the construction sector – that will almost inevitably lead to higher land prices. With limited progress on planning, inadequate land supply and inappropriate constraints on building heights, Ireland’s housing crisis clearly will not be solved in the near future.’

The price of newly listed properties in Dublin rose by 11.8%. Nationally, prices rose 8.9% over the last year.

The Central Bank of Ireland had tightened mortgage- lending rules two years ago to curb price increases, which had been running at more than 20%. Rises did slow to around 7% but a severe lack of homes to buy and a surging population has seen house price inflation climb.

Just 1.1% of the nation’s housing stock is on sale – the usual proportion is 4% to 5%.

PRICES on one Dublin street have risen more than 20% over the past year. No.14 Lomond Avenue in Fairview on the northside sold for €321,000 last November. The three-bedroom house was advertised as being in need of renovation. Now a home at No.9, just...