Average price of a resale house outside Dublin up 6.8%

The average price of a resale house across the country, excluding Dublin, has climbed by 6.8% over the last year, leading estate agent DNG has claimed in its latest House Price Gauge report.

That compares to a rate of house price inflation of 4.3% in the whole of last year and is twice the level DNG measured in the same period last year.

In Dublin the trend was similar, the agent said, with the average price of a resale property there rising by 6.4% in the year to June, compared to 3.3% last year.

“The first six months of this year saw relatively strong growth in residential property prices across the country, continuing a trend that began in the second half of last year,” said DNG Director of Research, Paul Murgatroyd.

“Indeed, the second quarter of this year alone saw the largest quarterly increase in values in three years in the Dublin market, with prices increasing by 2.5% in the three months to June.”

“Prices are underpinned by the continued lack of supply available to purchasers at the present time, combined with strong demand, particularly from first time buyers.”

The strong growth in prices in the capital is not only limited to houses.

The DNG Apartment Price Gauge found apartment prices in Dublin had climbed 4.2% in the year to the end of June.

The rising prices means the average cost of a resale home nationally excluding Dublin is €289,045.

When Dublin is included, the average price nationally is €360,094 and in Dublin alone it stands at €556,346.

Inflation has been strongest in the year to June in the mid-west region, at 8.5%.

First time buyers continue to be the ones making the bulk of purchases of second-hand properties in the capital, buying 53% of sales agreed in the period.

19% of purchases were made be owners trading up while only 7% were buying in order to trade down.

“The residential sales market proved very resilient in the first half of the year as potential buyers were very active in their search for a new home, which resulted in competitive bidding situations on the vast majority of stock offered for sale,” said DNG CEO, Keith Lowe.

“Properties that required minimal capital investment or that had very good energy ratings in place were the most sought after, given the budgetary and financial constraints buyers face in the current market.”

“This competition amongst buyers keen to secure a home led to properties achieving sale prices in excess of asking prices, and our research shows that, sales were agreed at 6.4% above asking price on average.”