House prices up 2.3% in Dublin over last three months

House prices rose by 2.3 per cent in Dublin and by 1.7 per cent nationally over the last three months, according to the latest property survey.

The MyHome.ie report revealed prices increased at a similar rate in the second quarter of 2015 as in the first three months of the year. Prices in Dublin are 10.4 per cent higher than at the same time last year, and 6.1 per cent nationally.

The MyHome.ie report shows the average asking price for a house in Dublin is €282,000, compared with €202,000 nationally.

Davy economist and author of the report Conall Mac Coille said the MyHome.ie data indicated a modest increase in house prices for the remainder of 2015.

The adjusted asking price for “new instructions” – properties that went up for sale on the website in the last three months – rose by 1.1 per cent nationally to €213,000, and in Dublin the asking price rose by 0.8 per cent to €312,900.

This is the smallest quarterly increase in asking prices in Dublin since late 2013, according to the MyHome.ie report. MyHome.ie is owned by The Irish Times Ltd.

“New instructions give the best lead indicator on house prices and, while the outlook remains uncertain, we believe house prices look set to rise by close to 10 per cent for the calendar year,” Mr Mac Coille said.

“However, as the figures for new instructions indicate, annual price inflation is likely to slow towards 5 per cent by the end of the year. This is not a negative given that wages have not kept pace with house prices, stretching affordability”.

He said cash buyers still accounted for more than half of transactions in the housing market even though the Central Bank’s new lending rules had now kicked in. It would probably be the second half of the year before the impact of the new rules became apparent.

“The combination of falling mortgage interest rates and rising rents makes house purchase more attractive but the fact we didn’t see the usual seasonal pick-up in mortgage approvals in April is noteworthy,” the economist said.

He urged the Government to avoid inappropriate intervention in the market ahead of the general election.

Managing director of MyHome.ie Angela Keegan said there was some evidence that the housing supply was beginning to improve, as the total number of homes listed on the site rose by 9.4 per cent between the first and second quarters of 2015.