House prices outside of Dublin have not yet bottomed out. For the same period a year ago, the difference was only at 17%. This divergence began around March last year when Dublin property prices began rising again.
The study by Myhome.ie found that Dublin house average asking prices rose last year by 2.4% to €241,392 while outside of Dublin residential property prices continued to decline by 5.9% to €189,086. This price difference is expected to continue to increase throughout this year also. But the study also noted that the decline in prices outside of Dublin is slowing.
For Dublin, the median asking price was €249,500 at 2013 year end, down €500 on the third quarter with North Dublin having the most significant decrease, yet Dublin South City recorded an 8.9% quarterly increase. Median residential property prices also declined over the quarter in Limerick, and Waterford. Although this decline is being considered small, according to Myhome.ie’s study.
Myhome.ie have also noted a high demand for Dublin homes due to “weak supply”. House building is currently at a low along with planning permission grants, causing low volumes of stock. This is also limiting the number of houses currently on sale, with figures at 30% less than the same period last year.