House prices rose across the country by 7.6 per cent in the year to January, figures from the Central Statistics Office revealed on Monday. However, the start of the new year saw prices fall, down by 0.5 per cent nationally in the month of January and by 1.2 per cent in Dublin.
Nationally, residential property prices rose by 7.6 per cent in the year to January. This compares with an increase of 6.6 per cent in December and an increase of 15.5 per cent recorded in the twelve months to January 2015.
In January however, prices fell by 0.5 per cent, following a 0.5 per cent increase recorded in December, and a 0.5 per cent decrease in November. Outside of the capital, prices rose by 0.1 per cent in January, compared with a decrease of 0.9 per cent in January 2015.
Dublin
In Dublin, property prices were 3.4 per cent higher than a year ago in January, but the monthly decrease was most marked, with prices falling by 1.2 per cent in January. In January 2015, prices also fell, down by 1.9 per cent on the month. Dublin house prices were down by 1.1 per cent in the month, but were up by 3.2 per cent compared to January 2015. Apartment prices were 4.8 per cent higher than a year ago.
The Central Bank’s new lending rules, introduced in February 2015, and which restrict lending multiples and loan-to-values, are perceived to be curbing price growth.
“The big picture is that new Central Bank lending rules have helped to significantly cool the housing market from double-digit gains this time last year,”David McNamara, analyst with Davy Stockbrokers said.
However price growth may pick up again.
“With demand continuing to strengthen and supply increasing only slowly, we expect an acceleration in price inflation as the year progresses, although short-term trends are likely to remain weak,” Dermot O’Leary, chief economist with Goodbody Stockbrokers said.
Overall decline
The latest figures show that house prices in Dublin are now 35 per cent lower than at their highest level in early 2007, while apartments in Dublin are 42 per cent lower than they were at the peak. In the rest of the country, property prices are 35.3 per cent lower than their highest level in September 2007.
