Dublin House Prices rise 21% in 6 Months
Today’s Irish Independent (free subscription required) reports that there are signs that the Irish property market may finally be starting to slow up just a little.
Certainly, there has been evidence of a major cooling off in Dublin within the last few weeks. (NB I am touching anything that looks remotely wooden as I type!) This could just be the traditional summer slowdown where house hunting is abandoned as holidays and warm weather go to our heads, an automatic correction of the mad panic since the start of 2006, or the harsh reality of all those interest rate increases. Whatever the reasons, while you were lucky to get in the door of an open viewing on a Saturday in March, now estate agents are actually ringing people to follow up after viewings!
Whether all hysteric house hunters return in September or not, any perceived cooling off in the Dublin property market must be viewed in context. Sherry Fitzgerald reported today that the price increase for second hand houses in Dublin for the first six months of 2006 was 21.2%. Bear in mind, that the equivalent increase for the entire year in 2005 was only slightly higher at 23.3% and was considered an outstanding year! This seems incredible and such paper based conclusions may not paint an accurate picture. Just one big surprise auction result could have skewed such results dramatically. Even the Dublin property market cannot sustain increases of 20% every 6 months! Yet, even if the real growth is not as impressive and there are some subtle signs that the so-called “soft landing” might be starting, it will be some time before anyone starts getting serious value for money.
Glad it worked out...
July 6th, 2006 at 1:02 pm
[...] Wysiwyg tells us that Dublin house prices have risen over 20% in the past 6 months. That’s outrageous. Awaiting a Mad Max style post housing bubble apocalypse… Send this post to a friend [...]
July 8th, 2006 at 6:15 am
So what’s behind this outrageous appreciation in Ireland. (Excuse my ignorance, just curious). We have similar increases in certain U.S. markets but here in Detroit houses are barely appreciating and houses sit unsold for more than a year with all the job losses going on. The contrast is amazing.
July 23rd, 2006 at 8:10 pm
well there are lots of opinions about what the key ingredient, but much of it comes down to lots of demand and a lack of supply as usual. the irish are obsessed with owning their own homes, and immigrants want to settle here too. but there is a real shortage of housing, especially in areas close to dublin city. everything being built near the city is apartments now too, and irish families do not live in apartments traditionally.
August 14th, 2006 at 6:11 pm
[...] Is the booming property market in Ireland finally in trouble? After a particular fervent Spring house buying frenzy, there was talk of the prospect of a soft landing at the start of July. However, speculation regarding the housing market has gone into overdrive throughout the traditional summer slowdown period. Can all this attention really be explained by editors needing to fill column inches, and property junkies having too much time on their hands during sleepy August? [...]