Cork house prices jump 6% in last quarter of 2018

Cork house prices jump 6% in last quarter of 2018

Construction continues on South Main Street of new student apartments to satisfy demand for accommodation. The latest housing report from Daft.ie said the final quarter of 2018 saw the first year-end increase in housing availability in a decade. Picture: Larry Cummins

HOUSE prices in Cork city jumped a further 6% in the final quarter of 2018, compared to a rise of 5% seen a year ago.

The average house price is now €276,000, 68% above its lowest point. In the rest of Cork, prices in the final quarter of 2018 were 6% higher than a year previously, compared to a rise of 8% seen a year ago. The average price for a house in the county is now €220,000, 54% above its lowest point.

According to the latest house price survey from property website Daft.ie, housing prices nationally rose by 5.5% during 2018.

The average price nationwide in the last quarter of the year was €254,000, down 1.1% on the figure for the third quarter. The annual increase of 5.5%, just over €1,000 a month, was smaller than increases of 9% in 2015, 2016, and 2017, and is the lowest year-end inflation rate since prices bottomed out in 2013.

The number of properties available on the market nationwide rose by 10% during 2018. More than 23,500 properties were on sale this month, compared to 21,200 a year earlier.

This is the first year-end increase in availability in a decade. Earlier this year, the rise was driven entirely by Dublin — with availability up 40% — but better availability has spread to other parts, including other cities and the rest of Leinster and Munster.

Ronan Lyons, economist at Trinity College and author of the Daft.ie Report, commented: “During the 2000s bubble and crash, the laws of supply and demand were secondary in the housing market to credit market shocks. Not least because of the Central Bank’s mortgage rules, the market this decade has returned to the more fundamental drivers of supply and demand.”

“Since 2013, demand has been strong but supply weak. The increase in homes being built — especially estate houses — in the last 18 months, though, has helped cool down inflation, in particular in the greater Dublin area, where construction activity is focused. The hope for the housing system is that the building of new homes continues to increase and to spread to other urban areas. ”

Martin Clancy from Daft.ie said: “Interest and demand in the property market continues to grow. We are now seeing over 1,000 property searches taking place every minute on Daft.ie.”

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