Following a dramatic surge in house prices during the summer, asking prices in Q3 paused for breath, rising by a modest amount according to the latest house price report from MyHome.ie
The mix-adjusted price on newly listed properties nationally rose by 0.4% during the quarter while prices in Dublin rose by just 0.1%. Newly listed properties are seen as the most reliable indicator of future price movements.
The mix adjusted asking price for new sales nationally is now €232K, while the corresponding figure for Dublin is €327K - an increase of €1K for both on Q2.
The price of 3 bed semis rose in 10 counties in Leinster in Q3 and Longford was no exception, the price of this house type increasing by 1.5% to €66,000.
This represents an annual increase of 11.9% with prices for this house type now at their highest level since Q1 2014.
The price of 4 bed semi-detached homes in Longford also rose by 5.8% to €89,950. This represented a year-on-year increase of 5.8%, which has also left prices at their highest level since Q1 2014.
For the entire stock of properties listed for sale on the website prices rose 0.9% nationally and 0.4% in Dublin. The national mix adjusted figure is now €215K up €2K while in Dublin its €297K.
The author of the report, Conall MacCoille, Chief Economist at Davy, said it was clear that following a busy summer trading period asking prices were now cooling as we head into the autumn months.
“The big picture is that the lack of housing supply is now clearly hurting transactions. In the first eight months of this year transactions are down 5% on 2015, albeit with some recovery in August. Clearly there are few constraints from the mortgage market with €1.8bn of approvals in the three months to August.
“Instead growing numbers of borrowers are chasing a diminishing pool of homes listed for sale. Competition amongst buyers is intense and this has driven ‘sale agreed times’ to a fresh low of 4 months – 3.3 months in Dublin and 4.5 months outside the capital.”
MacCoille concluded. “However looking ahead we believe the economic recovery together with the on-going lack of housing supply should lead to price gains close to 5% in 2017.”