Semid house prices have fallen across county mayo
MAYO was one of just five counties nationally where the asking price for three- and four-bed semi-detached houses fell in the second quarter of 2015, according to the latest house price survey from MyHome.ie.
The price of a three-bed semi in Mayo declined by 4% to €95,000 and the price of a four-bed semi fell by 2% to €120,000, leaving the annual change at -14%.
The other counties to see a fall in both three- and four-bed semi prices were Donegal, Roscommon, Laois and Wexford. Overall, the prices of three-bed semis rose in 14 counties and were unchanged in three but fell in nine.
However, the national trend of moderate house price growth that was evident in the first quarter of 2015 has continued into the second. The national mix-adjusted asking price rose by 1.7% in the second quarter - up 6.1% on the year. In Dublin the rate of increase was higher - 2.3% on the quarter and 10.4% on the year.
The mix-adjusted asking price for a house nationally is €202,000 while in Dublin it's €282,000. For new instructions, the national mix-adjusted figure was up 1.1% while in Dublin the corresponding figure rose 0.8%. This is the smallest quarterly increase in asking prices in Dublin since late 2013.
The author of the report, Conall MacCoille, chief economist at Davy, said the MyHome.ie data points to a modest increase in house prices for the remainder of 2015. “New instructions give the best lead indicator on house prices and while the outlook remains uncertain, we believe house prices look set to rise by close to 10% for the calendar year. However as the figures for new instructions indicate, annual price inflation is likely to slow towards 5% by the end of the year. This is not a negative given that wages have not kept pace with house prices, stretching affordability.”
With a general election looming, Mr. MacCoille urged the government to avoid introducing any measures aimed at relaxing credit constraints and inappropriately stimulating demand even further.
Meanwhile, the managing director of MyHome.ie, Angela Keegan, warned that market is still volatile. She stated: “While it is encouraging to see the market moving in the right direction, the bigger picture continues to show that the Irish housing market remains illiquid. It’s clear we still have some way to go before we can say we have a properly functioning market.”