House prices nationally set for slowdown

HOUSE prices are still surging but experts expect a sharp slowdown in the rate of rises later this year.

Property prices were up 12% over the last year to an average of almost €292,000 across the country, and to nearly €439,000 in Dublin, according to the Central Statistics Office.

Experts are forecasting prices will continue to rise, but the strong increases that have been seen over the last 12 months will start to slow towards the end of the year to around ‘5% or 6%’.

Price increases are already starting to slow in Dublin, but have yet to slow down outside of the capital. House prices increased in Dublin by 9% in the year to June this year, and increased by 15.2% in the year to June across the rest of the country.

From the price trough in early 2013, prices nationally have increased by almost 80%, but Dublin prices have almost doubled – up 92.7% – from their February 2012 low.

Dr John McCartney of Savills Ireland said: ‘Everything is in line with expectations. We had a burst of inflation this time last year and it’s just impossible to match that currently.

‘As a result, the year-on-year rate of houseprice inflation is slowing. A car can’t accelerate forever, and I think we’re going to see mid-single digit growth.’

Brokers Ireland director Rachel McGovern said: ‘The slowing rate of increase in Dublin is probably due to a confluence of factors, not least of which involve an increasing supply, including offloading of properties by lenders and affordability being stretched.’

The most expensive area of the capital was Dún Laoghaire-Rathdown with an average price of nearly €600,000. The cheapest area of the country was the border region, with an average price of nearly €131,000. The least expensive county was Longford, with an average price of just over €104,000.