House prices rose by an average of 7.6 per cent in the year to September, increasing by 5.3 per cent in Dublin and by 9.3 per cent in the rest of the country, the latest house price report from property website Daft.ie shows.
However, a separate report from MyHome.ie, in association with Davy Stockbrokers, found that the property market paused for breath in the third quarter after a surge in the summer with the asking price for newly-listed properties on its website rising by just 0.4 per cent nationally and by 0.1 per cent in Dublin. Prices for the entire stock of properties on the website were up by 0.9 per cent nationally and 0.4 per cent in Dublin.
Meanwhile, a third report from estate agents Sherry Fitzgerald showed the average value of residential property rose by 1.2 per cent in the third quarter, bringing growth to four per cent year to date. It found Dublin house prices grew by one per cent while outside the capital, prices rose by 1.6 per cent.
The Daft.ie report found the national average asking price for houses in the third quarter was €221,000, up from €205,000 a year ago and €164,000 at their lowest point during the recession.
It said h ouse price inflation in Dublin picked up from below the three per cent level but prices outside the capital rose even more sharply. In Cork, they were up by 9.8 per cent, they rose by 11.8 per cent in Galway, 13.7 per cent in Limerick and 16.4 per cent in Waterford, the report said.
All three reports pointed to the dwindling lack of supply in the housing market and noted it was depressing activity.
“The latest figures are a cause for concern," report author and Trinity College Dublin economist Ronan Lyons said. "There were price increases throughout the summer in all 54 markets covered in the report, only the second time this has occurred since prices bottomed out. Increases occurred throughout Dublin, which had seen almost two years of price stability following the Central Bank rules. This suggests that, while there is little risk of a credit-fuelled bubble, the underlying lack of supply is severely affecting the market.”
The number of properties for sale remained stable since the start of the year with just under 25,000 properties for sale in September but this was down 14 per cent from a year ago, Daft said.
MyHome.ie also noted the continued decline in the supply of housing, which had depressed the number of transactions, it said.
“The big picture is that the lack of housing supply is now clearly hurting transactions," Davy economist and report author Conall MacCoille said. "In the first eight months of this year transactions are down five per cent on 2015, albeit with some recovery in August. Clearly there are few constraints from the mortgage market with €1.8 billion 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 four months – 3.3 months in Dublin and 4.5 months outside the capital.”
According to Sherry Fitzgerald, just 27,800 residential units were for sale nationwide in July, representing a mere 1.5 per cent of the private housing stock and down 14 per cent from July 2015.
MyHome also surveyed visitors to its website about the state of the property market ahead of the budget and found most respondents favoured the announcement of measures to help home building rather than tax reliefs for homebuyers on October 11. Only 11 per cent were in favour of allowing buyers to borrow more while 48 per cent said measures to boost house building were the best way for the government to address the housing crisis.