It is everyone´s dream to own a house. However, acquiring the keys to a new home is probably one of the most difficult challenges for people these days. With homes gaining substantial rise in value with each passing year, first-time buyers must do everything they can to get in the market while they still can. If they wait any more, they´ll have to set aside more and more money for a down payment. Recent reports published by reliable sources have shown that the prices of properties are only going to keep increasing over time.
House prices are expected to rise by 5% this year, according to the latest report from property Ireland website MyHome.ie
In fact, the home prices in Ireland increased by almost 3% during the second quarter of 2018. If we have to dive deeper into the statistics, the average price of a house in the nation in the second quarter of 2018 was listed at around 250,000 euros. Compared to the real estate market a year ago, the average price increased by nearly 5.6%!
Reliable reports indicate that the average house price rose by 1.8% between March and June. What does this tell us? Well, it tells us that the average price of an abode in Dublin is almost 150,000 euros higher than the price range five years ago. The situation is pretty much the same across the county as the prices have risen substantially in other major cities as well. Cork saw a 4.7% rise in house prices; meanwhile, there was a 4.3% increase in Galway, and a 4.8% increase in Limerick. There were reports of rise in prices outside of the main cities as well; on an average, prices rose by 3.2% outside the major cities, with the largest increases reported in Connacht-Ulster and the smallest in Munster. Basically, the best time to purchase a property was 20 years ago; the second best time is probably right now before the prices skyrocket to more unbelievable heights.
The significant rise in prices has also resulted in the rise of the number of properties available for purchase nationwide. Currently, there are almost 5,000 properties listed for sale in Dublin alone, up close to 50% on the number a year previously. However, the supply of homes is still not enough to match the demands of the Ireland. It wouldn´t be far-fetched to state that the inventory crisis is also playing a major role in causing house prices to soar.
Average list price and year-on-year change(in Q2 2018)
- Dublin City– 374,885 euros—up 6.2%
- Cork City– 273,894 euros—up 6.9%
- Galway City– 285,277 euros—up 6.2%
- Limerick City– 189,416 euros—6.9%
As you can tell from the aforementioned statistics, houses and properties in the capital of Dublin are still the most expensive, with home values rising 6.2% to a median of 374, 885 euros. Cork City and Limerick City have witnessed a whopping 6.9% rise in property pricing and they are followed closely by Galway City with 6.2%.
Irish house prices set to rise further in 2019
For exmaple, the price of the average three-bed semi in Cork City is expected to rise by 4% in the next 12 months, according to a survey carried out by Real Estate Alliance. And the price of the average three-bed semi in County Limerick is expected to rise by 8% in the next 12 months, – reports the Alliance.
There have been various predictions that the Dublin housing market will contract and that the Central Bank’s lending rules will lead to a degree of market stagnation. The Davy chief economist said there indications are that there are no signs of these forecasts playing out in the housing market to any significant extent.
In fact what looks to have happened is that around €18 billion will have been spent on Irish housing in 2019, that’s up around 20% on the previous year.
Mr MacCoille also added that the level of home-building is still at its lowest level in 30 years, so we’re seeing transaction activity pick up from a very, very low base. It’s an improvement, it’s no where near where we’d want it to be but we’re not seeing any kind of impact from Brexit uncertainty holding back transactions yet. A noticeable trend that’s developed is house price growth growing much more aggressively outside of Dublin. So, the biggest urban rise was seen in Galway City, the Sunday Times Property Price Guide 2019 is predicting that house prices in Galway city will rise between 8%-10%, with an average cost of €250,000 for a house.