Great to hear.
House prices in Dublin have become a major issue.
Just three months ago we reported that houses in Dublin are €145,000 more expensive on average than they were five years ago.
But based on a new report from Savills, we could be about to an experience a dramatic drop in the speed with which house prices are increasing.
In what could be great news for homebuyers in Dublin, the property consultants Savills have said that annual house price inflation could slow from 12.5% in April to around 11% in May.
Residential Property Price Index figures are published on Friday of this week.
Sean O’Malley, Senior Economist at Savills, attributes this expectation to several factors, saying: “Monthly inflation picked up sharply this time last year. Despite a continuing strong market this will be hard to match in the corresponding months ahead, meaning that the annual rate of inflation is set to slow from Friday.”
He believes that the slowdown will continue for the rest of the year, saying: “Partly this will be due to the base effect. But also the fact that supply is rapidly increasing. Housing completions were up 46% in 2017 and, despite weather-related disruptions, this continued in Q1 2018 with a 27% year-on-year expansion. While the market clearly remains undersupplied, increased construction activity is slowly bridging the gap between demand and supply. The impact of this will be to gradually moderate the rate of house price growth.”
We hope you’re right, Sir.
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