House prices are increasing now up to €1,000 a week, up from previous report

MyHome.ie just released a report than claims house prices are increasing more than the Daft.ie report. MyHome.ie report doubles Daft.ie’s findings, a rival website.

A greater focus on property prices in Dublin may be the reason for the vast difference in price increase especially because Dublin average monthly increase is more than €5,000.

The report also indicates the possible increase of prices are due to the Help-to-Buy scheme being reviewed for termination. Fear from first-time buyers are rushing them to buy houses before the cancellation of the scheme.

The Help-to-Buy scheme can provide tax rebates up to €20,000. The property prices nationally were up 8.9 year-on-year.

Conall MacCoille, author of report, said the huge inflation of house prices can be from job growth, high competition among homebuyers, and rising income. This as well as the Help-to-Buy scheme contributed to a rapid increase of house prices.

An increase of first-time buyer lending and relaxing of the mortgage lending regulations is also a factor.

MacCoille is predicting a rush of mortgage lending in 2017 if the Help-to-Buy scheme is phased out and the growth rate of housing prices will slow down in 2018.

The Help-to-Buy scheme has ranked up already a €110 million cost with an average €15,000 rebate per person.

Another interesting point from the report was an increase of homes selling over a million euros.

When the results if the Help-to-Buy scheme if it will be phased out or not will change the housing market dramatically. If it is phased out we will likely see a rush of applicants looking to receive the rebate while they can.

In reference to House prices now rising by €4,000 a month, says MyHome.ie by Eoin Burke-Kennedy in The Irish Times.

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