House prices up 72% in Cork city since low point of the recession

House prices up 72% in Cork city since low point of the recession
House prices are soaring in Cork

THE average asking price for houses in Cork City was €283,000 in the first three months of 2019, up 8% on this time last year and 72% up from the low-point of the recession in 2013.

According to Daft.ie’s latest quarterly housing report, the average asking price across county areas was €227,000, up 6% on last year and 58% on 2013.

Prices rose across the country, with the national average standing at €261,000, up 5.9% on last year, an increase of €15,000 on average.

The rate of growth slowed in Dublin, where prices in the first three months of the year were 4% higher than a year previously, compared to a rise of 8% seen a year ago.

The average house price is now €383,000 — 74% above its lowest point.

The number of properties available to buy on the market nationwide was just over 22,500 in March, up 11% year-on-year. The report found that the increase is being driven by Dublin, where availability is up 40% year-on-year.

In Munster, availability is largely unchanged, while in Connacht-Ulster, stock on the market is still falling.

Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the report, said that the more houses will be needed in cities like Cork if they are to slow growth in the same way as Dublin.

“What is happening in Dublin that’s not happening elsewhere? The answer is supply.

“The Dublin market shows a big improvement in availability and a cooling off in inflation. With completions set to increase in coming quarters, a period of much more moderate inflation — at least in Dublin — appears likely. While availability is up 40% year-on-year in Dublin, outside Dublin the increase is just 5% and that is being driven by Leinster (and the other cities). Unfashionable as it may be to say this, housing prices are the result of demand and supply. To cool down inflation elsewhere in the country, new homes will need to be built,” he said.

Martin Clancy from Daft.ie said that it’s website trends reflected the interest in the property market.

“In addition to a sharp increase in the number of properties on the market, the volume of transactions is also up across the board. In the year to December, there were nearly 19,000 residential property sales in Dublin alone – an increase of 4% compared to the previous year. Likewise, we’re continuing to see strong interest on Daft.ie with over 1,000 property searches now taking place every minute across our website and mobile apps.”

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