Prop­erty prices rise again but rate of in­crease slows

RE­PORTS FROM MY­HOME.IE AND DAFT.IE SHOW HOUSE PRICES ROSE IN THE PAST YEAR BUT NOT AS STEEPLY AS PRE­VI­OUSLY SEEN, WRITES MYLES BUCHANAN

Wicklow People (West Edition) - - NEWS -

PROP­ERTY prices in Wick­low rose by €21,000 in the past year ac­cord­ing to the lat­est My­Home. ie Prop­erty Re­port.

The re­port for the fi­nal quar­ter of 2018, in as­so­ci­a­tion with Davy, shows that the me­dian ask­ing price for a prop­erty in the county now stands at €320,000. While this was un­changed from the pre­vi­ous quar­ter, it is a seven per cent in­crease on the same time last year when it stood at €299,000.

The rise in prices was re­flected in the ask­ing price for a three-bed semi-de­tached house in the county, which is also un­changed from the pre­vi­ous quar­ter but is up 2.1 per cent on this time last year from €293,000 to €299,000. Prices for this house type re­main at their high­est level in eight-and-a-half years, since they stood at €310,000 in the se­cond quar­ter of 2010.

The ask­ing price for a four-bed semi-de­tached house in Wick­low rose by 3.5 per cent in the last quar­ter, go­ing from €362,500 to €375,000 and putting them back at the same level they were at this time last year.

The num­ber of prop­er­ties for sale in Wick­low on My­Home.ie fell nine per cent in the last quar­ter but was up 16.2 per cent on this time last year.

The av­er­age time to go sale agreed on a prop­erty in the county now stands at four months.

Na­tion­ally, the re­port notes that house prices are ex­pected to rise by around five per cent in 2019 af­ter slow­ing sharply in quar­ter three and sta­bil­is­ing in the last quar­ter of 2018. It also pre­dicts that ro­bust de­mand and ris­ing in­comes will con­tinue to push house prices higher once the un­cer­tainty of Brexit has been re­solved.

Con­all MacCoille, Chief Econ­o­mist at Davy and au­thor of the re­port, said the over­all pic­ture is that the re­cent slow­down has evened out, hous­ing sup­ply is slowly pick­ing up – even if it re­mains well short of de­mand – and liq­uid­ity is slowly im­prov­ing off a low base.

Mean­while, the lat­est House Price Re­port is­sued by daft.ie re­veals that prop­erty prices in Co Wick­low were six per cent higher in the fi­nal quar­ter of 2018 than they were at the same time in 2017. This com­pares with a rise of eleven per cent seen be­tween 2016 and2017.

The daft.ie re­port states that the av­er­age house price in Co Wick­low is now €334,000 – 64 per cent above its low­est point. This fig­ure places the Gar­den County as the fourth most ex­pen­sive area for av­er­age prop­erty prices, af­ter south County Dublin (€591,000), south Dublin City (€407,000) and north Dublin City (€338,000).

The re­port pro­vides a snap­shot of ask­ing prices in the county and re­veals that the av­er­age ask­ing price of a num­ber of prop­er­ties, in­clud­ing: a one-bed apart­ment – €142,000 (up 17.5 per cent on last year); a two-bed ter­race – €189,000 (up 12.6% on 2017); a three-bed semi-de­tached house – €252,000 (up 4.8 per cent); a four-bed bun­ga­low – €488,000 (an in­crease of 9.4 per cent on last year); and a five-bed de­tached home – €510,000 (up 1.7 per cent on the pre­vi­ous year).

Na­tion­ally, house prices rose by 5.5 per cent dur­ing 2018. The av­er­age price na­tion­wide in the fi­nal quar­ter of the year was €254,000, down 1.1 per cent on the fig­ure for the third quar­ter.

The an­nual in­crease of 5.5 per cent (€241,000 was the av­er­age ask­ing price for Q4 2017) or just over €1,000 a month, was sig­nif­i­cantly smaller than in­creases of be­tween eight and nine per cent seen in 2015, 2016 and 2017. This marks the low­est year-end in­fla­tion rate since prices bot­tomed out in 2013.

The daft.ie re­port also re­vealed that the num­ber of prop­er­ties avail­able to buy on the mar­ket na­tion­wide rose by ten per cent dur­ing 2018. There were over 23,500 prop­er­ties for sale in De­cem­ber 2018, com­pared to 21,200 a year ear­lier. This is the first year-end in­crease in avail­abil­ity in a decade. Whereas ear­lier in the year the in­crease was be­ing driven en­tirely by Dublin – where avail­abil­ity is up 40 per cent – bet­ter avail­abil­ity has now spread to other parts of the coun­try, in­clud­ing other ci­ties, and the rest of Le­in­ster and Mun­ster.

Ro­nan Lyons, econ­o­mist at Trin­ity Col­lege Dublin and au­thor of the re­port, be­lieves that the steady re­turn to home-build­ing has helped to ‘cool down’ rapidly in­flat­ing house costs.

‘Not least be­cause of the Cen­tral Bank’s mort­gage rules, the mar­ket this decade has re­turned to the more fun­da­men­tal driv­ers of sup­ply and de­mand. Since 2013, de­mand has been strong but sup­ply weak. The in­crease in homes be­ing built – es­pe­cially es­tate houses – in the last 18 months, though, has helped cool down in­fla­tion, in par­tic­u­lar in the

Greater Dublin area, where con­struc­tion ac­tiv­ity is fo­cused,’ saidMrLyons.

ABOVE: my­home.ie’s map show­ing the me­dian ask­ing price for a three-bed semi in the last three months of 2018, the per­cent­age change from the pre­vi­ous quar­ter, and the per­cent­age change from the price at the height of the boom a decade ago. LEFT: The most ex­pen­sive and least ex­pen­sive ar­eas for av­er­age prop­erty prices ac­cord­ing to daft.ie.

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