Dublin’s housing market is showing a trend that has not been seen since 2013 and is not consistent with the rest of Ireland. MyHome.ie concluded that the annual asking price inflation has declined 2.4% nationally in the 2nd quarter of 2019. The annual asking price inflation is at its lowest level in five years. When solely concentrating on Dublin, they fell .6 % which marked the first time Dublin has been negative since 2013 with respect to asking price inflation. Asking prices are continually growing, but at smaller rates than historically. Nationally asking prices increase by 2.1% in the 2nd quarter this year. Dublin’s asking prices grew slimly at .5% which marks the weakest 2nd quarter gain since 2013.
The report also found that the median asking prices for new sales grew by 5,000 euros to 276,000 euros and Dublin grew by 2,000 to 382,000 euros. Experts use newly-listed properties as a reliable indicator into predicting future price movements. Conall MacCoille who authored the report and is the chief economist at Davy, commented on falling prices causing much fear towards a damaged downturn in the market. Increased regulation is cited for the price falls this quarter. The Central Bank of Ireland tightened mortgage lending rules which has made it harder for many people to afford houses and cause supply to increase. Conall MacCoille commented, “Ireland’s economy continues to perform well, and the property market will continue to be underpinned by high employment and wage growth.” The Central Bank is going to need to address this problem to allow for a growing economy and population to afford home ownership and renting.
Angela Keegan, managing director of MyHome.ie, is optimistic following the published report and sees the increased activity as a great sign moving forward. She said, “The environment for buyers is becoming much more favorable with 22,600 homes listed for sales in June 2019 on MyHome, up 4.5% on the same period in 2018. The Central Bank was trying to slow down rising prices by tightening mortgage lending regulations but ended up blocking up certain types of citizens from receiving mortgages. This regulation can be used as a short-term fix but is not substantial and other strategies need to be implemented for consistent long-term success.