House prices still climbing at ten times inflation rate

HOUSE prices are still rising at almost ten times the rate of inflation, Central Statistics Office figures show.

The average house price is now almost €300,000, and property prices rose 6.5% in 2018 – adding more than €18,000 to average values.

Experts are predicting prices will still keep climbing as supply of new homes has still not fully met demand. The fastest-rising prices were houses in Clare, Limerick and Tipperary North where they went up almost 19% last year, as the region catches up with the rest of the country.

Smaller starter homes had a higher percentage rise compared to more expensive homes.

The average price in Dublin, of more than €446,000, was the highest in any region or county. The most expensive area in the capital is Dublin 4, with an average price of just over €790,000. Dún Laoghaire-Rathdown, meanwhile, has an average price of €620,600.

Elsewhere, Wicklow had an average price of €357,377, making it the second-most expensive county.

Greystones was the most expensive town outside Dublin at €452,023.

The border area of Cavan, Donegal, Leitrim, Louth, Monaghan and Sligo was the least expensive region, with an average price of €135,439.

Clones, Co. Monaghan, is the cheapest place in the Republic, with an average price of less than €70,000.

Dr John McCartney, research director with Savills estate agents, said: ‘My expectation is that house price inflation will settle at moderately positive levels because I do think that supply still has a bit of a way to go to fully catch up with demand. We’re well on track for that to happen.’