Slowdown in pace of house prices growth
THE rapid growth in house prices has begun to slow, a new survey has found.
The slowdown was particularly marked in some areas, the Institute of Professional Auctioneers and Valuers report revealed.
It found house prices rose just 1% in Dublin 4 between July and December 2017. Similar houses rose by just 0.99% in north Co. Dublin and by 1.99% in Dublin 15.
This trend mirrors a report by Daft.ie last month, which said that house prices had risen by 8.8% in the first half of 2017, but just 2% in the second half. It comes as the latest Economic and Social Research Institute data shows Irish consumer confidence has hit a 17-year high, buoyed in part by how well the economy has withstood Brexit.
The IPAV survey, which suggests a general slowdown in house prices, was strongly supported by auctioneers around the country yesterday. Owen Reilly, who has an auctioneering business with a strong presence in Dublin’s Docklands, said that the IPAV findings of a slowdown are ‘absolutely the experience’ of his business. However, he said he has found that house price growth has been faster in the first half of the year than in the second half for some time now.
He said that the Docklands was showing growth rates of 1% or 2% per month in the first half of 2017, but this slowed to just 0.3% in November and 0.2% in December. ‘I’ve noticed this trend for a few years now,’ he said.
Liz Kirby, an auctioneer in Glanmire, Co. Cork, said that the residential property market was ‘exceptionally busy’ in the first half of 2017 but started to slack off in July, even allowing for the annual summer lull. ‘Things have slowed down and haven’t really picked up since then,’ she said.
Ms Kirby said concerns over Brexit had an effect in slowing prices. Also, prices had jumped so dramatically that by the second half of the year, they were beyond the reach of many buyers. ‘Some in the market felt that house prices were beyond all proportion,’ she said.
All estate agents who spoke to the Irish Daily Mail said that many sellers had unrealistic expectations of a return to the boom years, which is pushing buyers out of the market.
Tony Dunne, an auctioneer in Glenageary, Co. Dublin, said that there may be a major drop in the market because of sellers’ unreasonable expectations.
‘It may take some time for the penny to drop that the market is not what they have believed it to be,’ he said. ‘The banks are not lending money.’
His comments came as the latest KBC Bank ESRI index shows that Irish consumer confidence is at its highest point since February 2001. However, an analysis of the figures by KBC Bank suggests there is a strong seasonal element and that the upsurge may be reversed in coming months.