House prices are rising for the 18th month in a row


PROPERTY price gains show no sign of slowing down as prices rebound in February putting homeownership further into the distant future for many.

Rice is now rising at the fastest rate in seven years as an oversupply of buyers and a shortage of homes for sale combine to ignite rapid home price inflation.

The cuckoo tills, overflowing with cash, also drive up prices. They are buying new homes by the block and are willing to outbid other buyers to secure ownership.

In the real estate market for red homes statewide, prices rose 15.3 percent in the year to February, according to the Central Statistics Office (CSO).

This means that prices have accelerated for the 18th month in a row.

House prices are now at their highest since April 2015.

In Dublin, house prices rose 13.5 percent, while house prices outside Dublin were up 16.8 percent.

Prices have risen 27 percent in the border region over the past year, with experts saying the popularity of working from home and a limited supply of homes to buy have pushed prices unsustainably high.

The Southeast has seen a 20 percent increase this year, with similar factors behind the increase.

The national inflation rate is 15.3 percent, higher than in previous months, indicating the inflation rate is gaining momentum.

Prices are rising at Celtic Tiger rates, but experts said the credit limits imposed on borrowers by the central bank meant the dangers of over-indebtedness by buyers and reckless lending by banks were kept in check.

Prices are now just 2.5 per cent lower than the highest level they reached in 2007, at the height of the Celtic Tiger property bubble.

House prices in Dublin are 10 per cent below their February 2007 peak, while house prices in the rest of Ireland are 4 per cent below their May 2007 peak.

Prices across the state have more than doubled since their 2013 low.

Economist Austin Hughes of KBC Bank said it was now likely that a new peak in prices would be reached by the middle of this year.

He said growth in house prices next year could reduce affordability and the dampening impact of the European Central Bank’s looming rate hikes.

But pressures on the cost of living and uncertainties surrounding the economic outlook are likely to mean

further increases in the next one to two months.

CSO statistician Viacheslav Voronovich said existing homes accounted for 3,036, or 85 percent, of home purchases filed with the Revenue Commissioners in February.

The remainder of 548 (or 15.3 percent) were new homes.

Households paid a median or mean value of 282,000 euros for a residential property in February.

The lowest median price for a flat was €132,750 in Longford, while the highest was €600,000 in Dún Laoghaire-Rathdown, the CSO said.

New home prices rose 5 percent in the three months to the end of last year compared to the same period last year.

For existing homes, home price inflation was 17 percent over the same period, the CSO said. House prices are rising for the 18th month in a row

Fry Electronics Team

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