House prices in the Republic grew at an annualised rate of 8.1 per cent in January as supply pressures continued to underpin demand. This was down from a rate of 8.8 per cent in December and a rate of over 10 per cent last August.
The latest official figures indicate prices in Dublin rose at a yearly rate of 7.5 per cent while values outside the capital increased at a rate of 8.6 per cent.
The Central Statistics Office’s (CSO) latest property price register showed the median or middle price of a home purchased by households in the 12 months to January was €359,999.
The highest median price was €662,349 in Dún Laoghaire-Rathdown, while the lowest median price was €180,000 in Leitrim.
The CSO’s national index indicates prices nationally are now 16.9 per cent above their highest level at the peak of the property boom in April 2007. Dublin residential property prices are 4.3 per cent higher than their February 2007 peak.
The latest snapshot of the market comes amid a slowdown in new home completions and with the Central Bank warning that overall investment in the sector remained below required levels based on population growth and household formation.
The CSO figures show that in the year to January, 48,955 dwelling purchases by households at market prices were filed with Revenue. Of these, 17,814 (36.4 per cent) were purchased by first time buyer owner-occupiers, while former owner-occupiers purchased 25,770 (52.6 per cent).
“While the rate of national house price growth has eased, house prices are still rising steeply and continue to be a huge source of frustration and despair for many house hunters,” Trevor Grant, chairperson of Irish Mortgage Advisors, said.
“While many are qualifying for mortgage and buying homes, for too many of this country’s young people, buying a house has simply become unachievable,” he said.
“If house prices are ever to be kept in check, the perennial problem at the heart of the Irish housing crisis – that is, the huge shortage of, and high demand for, housing – needs to be tackled,” he said.
