Strong demand and rising wages will drive up house prices by 5 per cent this year, assuming Brexit uncertainty is resolved, according to the latest figures from property website MyHome.ie.
In a report published Wednesday, the property website says house price growth stabilised in the final three months of 2018. Over the year as a whole, prices rose by 6.1 per cent nationally and by 3 per cent in Dublin.
The report, published in association with stockbrokers Davy, predicts robust demand combined with rising incomes will push prices up by 5 per cent this year, once the uncertainty around the UK’s exit from the EU is resolved.
Prices dipped nationally by 0.9 per cent and remained unchanged in Dublin during the last quarter of 2018. This left the median – or mid point – cost nationally at €266,000, down €2,000 from the preceding three months. The median asking price for a home in the capital was €375,000.
Conall Mac Coille, chief economist Davy Research, notes in the report that predictions early last year that Central Bank lending rules would stall growth proved wide of the mark.
More reliable
He said Central Statistics Office figures showing prices rose 8.4 per cent in the year to October were more reliable than other evidence. Also, he said there was little sign of Brexit-related panic.
Mr Mac Coille estimated that the number of property transactions completed in the year rose almost 20 per cent in nominal terms and will finish the year just below €18 billion. That compares with €14.9 billion in 2017.
“This represents close to 5 per cent growth in transaction volumes,” he said. “Notably, transactions are also up in Dublin despite the impact of the Central Bank mortgage-lending rules being felt most keenly in the capital.”
He pointed out that MyHome.ie listed 217,000 dwellings for sale in December. “This is still far too low to meet demand but is up 15 per cent on last year.”
“In Dublin, there were 5,000 homes listed for sale – up 44 per cent on the year. There has been no marked increase in the length of time it takes to sell a property – perhaps a first warning of a slowdown in housing market activity.”
Turned corner
Angela Keenan, MyHome.ie managing director, said she believed 2018 will be remembered as the year when the stock of both new and second-hand homes turned the corner.
MyHome.ie’s report says the underlying picture shows housebuilding is increasing. Property owners are also building equity in their homes, making them more likely to sell.
This improvement is evident from the number of homes listed for sale on the website, the report adds.
