With the Ireland housing crisis still well underway, there are little signs of recovery for a long while, making the current state of the housing market to become the new normal.
The Irish population has begun to accept what it is and proceeding with their life as with an “oh well” attitude. The new normal is here and taking over the Irish community.
With signs of the housing prices to possibly be slowing on their steep upward journey, consumers may begin to come back into the housing market as more active buyers than the market has seen in recent trends.
The second quarter of 2018 brought on some surprising numbers as the overall rates were finally evaluated and ready for assessment.
House prices rose nationally by 2.7pc with an average house price of 254,000 euro, or, 5.6 pc higher than the previous year.
These prices and statistics representing the nation as a whole. However, Dublin alone typically has a large impact on these reports.
In just Dublin, prices rose 1.8pc from March to June….an insignificant rise in just a four-month span when compared to the neighboring cities. This jump did, however, make the average Dublin house cost buyers 374,885 euros.
However, with Dublin being the expected largest driving force of the overall housing market it is of surprise with the findings of the other major cities reporting much steeper increases.
Among these other major cities, Limerick and Waterford cities have reported prices to rise by 4.8 pc. We saw a 4.7 pc rise in Cork and a 4.3pc rise in Galway as well.
Neighboring cities reported growth in prices as well, hovering around 3.2pc.
With the increase in prices, there has also been an increase in homes for sale across the nation.
With the increase in homes, however, there is little progress when addressing the overall housing crisis and the shortage of homes that still exists.
As in Dublin’s market, the new supply is helping to slow down the vast inflation that has been occurring.
It is being proven difficult in areas such as Dublin to meet the needs of buyers and to help the economies inflation and housing prices. With the majority of estate needed to be developed being apartment buildings it causes hardships and will not help policymakers in the supply mix.
Dr. Kieran Mcquinn, a researcher of economics, is reported as saying that “if strong price rises continue increasing at their current rate, there is a possibility of a bubble in the market.
With the development of new homes for buyers, the housing shortage remains at crisis levels.
Average asking prices of homes are considerably higher than they should be and the way buyers in the market are feeling about the value of their money in regards to the housing market is hitting a new low.
This finding is adding scrutiny to the turnaround of the housing crisis, and for developers to continue on their mission to meet current demand.