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House prices set to edge up again

Published 30/06/2015

The MyHome.ie survey of asking prices revealed an increase of 1.7% in the three months from April
The MyHome.ie survey of asking prices revealed an increase of 1.7% in the three months from April

House prices are being forecast to continue modest growth this year.

The MyHome.ie survey of asking prices revealed an increase of 1.7% in the three months from April with the figure over the last 12 months at more than 6%.

It said the rate of increase in Dublin was higher - 2.3% on the quarter and 10.4% on the year.

Conall MacCoille, chief economist at Davy, said the data suggests a 10% increase in prices over the course of this year.

"While the Central Bank's new lending rules have now kicked in, cash buyers still account for over 50% of transactions in the housing market," he said.

"It will probably be the second half of the year before their impact becomes apparent. The combination of falling mortgage interest rates and rising rents makes house purchase more attractive but the fact we didn't see the usual seasonal pick-up in mortgage approvals in April is noteworthy."

MyHome also reported some evidence of supply issues easing.

Angela Keegan, managing director of the site, said it had a 9.4% increase in the number of homes listed.

"The upward trend has been most marked in Dublin where we now have 5,550 properties listed, up 18.6% from March," she said.

"Transaction levels remained strong early in 2015, but as with supply, they are coming off a low base. In the first four months of the year for which the data is close to complete transaction values are up 59% and by 48% in volume terms on the same period of 2014.

"While it is encouraging to see the market moving in the right direction the bigger picture continues to show that the Irish housing market remains illiquid. It's clear we still have some way to go before we can say we have a properly functioning market."

MyHome also released its figures on average asking prices for three bedroom semi-detached properties around the country.

In Dublin prices are up to 271,500 euro, in Cork they remained static at 185,000, and Galway was up 12% to 167,000 euro, one of the largest increases.

The biggest falls were in Roscommon and Donegal, where asking prices were down 12%.

Cavan saw the biggest rise, up 22%, MyHome said.

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