Figures indicate Dublin housing market cooling
By Aoife Carr Last updated: 02-10-06, 12:01
Figures released by estate agents Sherry Fitzgerald this morning suggest a cooling off in the second-hand housing market in the three months between July and September.
The average price of a second-hand property in Ireland rose by just 2.6 per cent during this period bringing growth in the nine-month period to the end of September to 17.9 per cent.
This moderation in the pace of price growth was even more evident in the Dublin second-hand market, in which the average price rose by 1.5 per cent during the third quarter.
The pace of growth in Cork was more in line with the national average, coming in at 3.1 per cent for the quarter and 14.5 per cent in the first nine months; the other regional centres of Galway and Limerick also witnessed similar levels of price growth.
Marian Finnegan, chief economist with Sherry Fitzgerald, said a combination of rising interest rates and an increase in the amount of second-hand homes on the market were the main factors in the slowing down of price rises.
“After a phenomenal first six months in which average house prices rose spectacularly we are now witnessing some moderation in the pace of capital appreciation. A soft landing like this in the context of a very vibrant economy is the best result for all participants in the market,” she said.
Ms Finnegan remained positive about the future of the Irish property market.
"The short term deceleration in the pace of house price inflation is a result of a number of unique market conditions, most especially the current interest rate environment. It is a temporary phenomenon.
“With interest rate increases likely to level out in the New Year we remain confident that the combination of continued employment growth, record breaking migration levels and very buoyant rates of economic expansion will facilitate a return to a more vibrant rate of market activity in 2007,” Ms Finnegan added.
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