House price inflation has surged ahead in the first three months of 2017 making double digit growth for the year more likely according to the latest house price survey from MyHome.ie in association with Davy.
The mix-adjusted price on newly listed properties nationally rose by 5.5% in Q1 while prices in Dublin rose even higher by 6%. 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 €239K, an increase of €12K on the previous quarter while the corresponding figure for Dublin is €347K, an increase of €19K.
As a result of the first quarter increases, national prices are up 9% on the year, while Dublin prices are higher again at 10.2%.
Not surprisingly the price of three and four bed semis rose in the vast majority of counties and Longford was no exception.
The price of a three bed semi in the county increased by 2.9% to €70,000.
This represented an annual increase of 16.67% with prices at their highest level since Q4 2013.
Meanwhile the price of a four bed semi fell by 8.55% to €80,000, although year-on-year prices were still 3.23% ahead of where they were this time last year.
For the entire stock of properties listed for sale on the website prices rose 1.6% nationally and 1.7% in Dublin.
The national mix adjusted figure is now €218K while in Dublin it is €303K.
Conall MacCoille, Chief Economist at Davy, said Ireland’s strong recovery, the ‘Help to Buy’ scheme, looser credit conditions and the lack of housing supply are likely to combine to make it a frothy year for Irish house price inflation.
“Credit conditions are clearly supporting the market,” he added.
“The average mortgage approved to first-time-buyers in February was €206,500 up by an enormous 15.2% on the year from €179K.
“This must in part reflect the relaxation of the Central Bank rules, eliminating restrictions on the availability of 90% loan-to-value mortgages.”