According to the Irish Independent, housing prices in Dublin on average are decreasing by just over €1,000 per month. However, property prices in the rest of the state are continuing to rise slowly or remain constant.
Property prices have been determined to have decreased on average of €4,500 in the past quarter of the year. Since the beginning of 2019, property prices in Dublin have fallen by 2.2%. The price of an average home in Dublin is now down to €433,000.
Although the average cost of housing in the capital has decreased, Dublin remains one of the most expensive cities to live in Ireland. On average, properties in the capital cost two to four times more than property in the rest of Ireland. This data was reported from the Irish Independent and the Real Estate Alliance (REA) Average House.
South Dublin has seen the steepest decline in overall average home values. In three months, property prices of South Dublin have fallen by €6,500. Although progress has been shown in the prices of homes in Dublin, prices are still rising in other counties. Prices of homes in Longford have risen by 22% since last year. Leitrim also exemplifies an area of little progress in regard to property prices. Prices in Leitrim increased from an average of €80,000- €90,000. The increase is likely due to increase in demand with lacking supply. Prices in Leitrim have increased by 21.8%.
The data was gathered based off of the most recent sale prices of three bedroom properties. A three bed semi is Irelands most typical home. The data was determined based off of real transactions instead of asking prices like most surveys use. Asking prices tend to inflate numbers due to the aspirational asking prices.
The decline in property prices in Dublin is likely because of the loan ceilings. Loan ceilings are caps on the maximum amount of interest lenders can charge for borrowing money. These loan ceilings are impacting the increasing numbers of new home schemes, which reduce existing surrounding property prices. Loan ceilings also reduce the number of buyers. Construction labor costs are on the rise, but reduce the sale value of old home in need of work.
The average three bed semi detached home now amounts to €236,028. The national average price of homes nationwide has only risen by .05% in comparison of Q2 to Q1 of 2019. However, since last year the national average of the price of an average property rose by 1.54%. In 2018, prices of homes rose by 8%, thus the prices shown in 2019 prices are leveling out.