House prices are now almost at the peak of 2007
Although house prices continue to experience double digit growth in all but one of the 20 market segments captured by the CSO Residential Property Price Index, it is notable that there has been a month-on-month decline in the rate of increase since January, according to Brokers Ireland.
Rachel McGovern, Director of Financial Services at the organisation which represents 1,225 Broker firms said: “Prices are now almost at the peak of 2007. However, the rapidly changing interest rate environment, especially fixed rate increases, which have taken hold since those April figures, are likely to dictate how house prices will perform for the remainder of the year.
“Given that, one would have to anticipate a further tapering in the rate of growth.”
Nonetheless she said given strong and pent-up demand and the fact that it is generally far cheaper to service a mortgage than pay rent, provided you can get a mortgage, it is difficult to see much of a drop in prices.
“Many aspiring buyers have already been squeezed out by overly strict macroprudential mortgage rules introduced in early 2015 when house prices were much lower. And the market is becoming even more difficult for them.
“It is undeniable that dysfunction and the financialisation of housing have been and continue to be the hallmarks of the property market and have clearly prompted strong if unusual commentary from our President,” she said.
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