Limerick house prices still in flux, says report

Anne Sheridan

Reporter:

Anne Sheridan

No 55 Castlewell, a four-bed semi on the South Circular Road, is for sale for �225,000 via Hickey O'Donoghue
THE PRICE of four-bed semi-detached houses in Limerick has risen slightly, while the price of three-bed houses has seen a small decrease.

THE PRICE of four-bed semi-detached houses in Limerick has risen slightly, while the price of three-bed houses has seen a small decrease.

The latest report from the property site MyHome.ie shows that house price trends in the first quarter of this year have continued into the second quarter.

Nationally, their report shows that house prices are rising by 1.7% - up 6.1% on the year. However, in Dublin the rate of increase was higher – 2.3% on the quarter and 10.4% on the year.

While the median asking price for three and four-bed semis rose in the majority of counties, the story in Limerick was mixed.

While the median asking price for four-beds rose by 2.4% to €169,000, the asking price for three beds fell by four per cent to €130,000.

The author of the report, Conall MacCoille, chief economist at Davy, said the MyHome.ie data points to a modest increase in house prices for the remainder of 2015.

“While the outlook remains uncertain – we believe house prices look set to rise by close to 10% for the calendar year. However as the figures for new instructions indicate, annual price inflation is likely to slow towards 5% by the end of the year,” said Mr MacCoille.

He continued: “While the Central Bank’s new lending rules have now kicked in, cash buyers still account for over 50% of transactions in the housing market. It will probably be the second half of the year before their impact becomes apparent. The combination of falling mortgage interest rates and rising rents makes house purchase more attractive but the fact we didn’t see the usual seasonal pick-up in mortgage approvals in April is noteworthy.”

Angela Keegan, managing director of MyHome.ie, said the report found some evidence that the supply situation was beginning to improve.

“The total number of homes listed on the site rose by 9.4% between quarter one and quarter two.

“The upward trend has been most marked in Dublin where we now have 5,550 properties listed, up 18.6% from March.”

“Transaction levels remained strong early in 2015, but as with supply, they are coming off a low base. In the first four months of the year for which the data is close to complete transaction values are up 59% and by 48% in volume terms on the same period of 2014.”

“It’s clear we still have some way to go before we can say we have a properly functioning market,” she concluded.