Houses price surge of 21% in the mid-west

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Houses price surge of 21% in the mid-west

Posted on 28Nov

Houses price surge of 21% in the mid-west

by MyMortgagesTags , ,

Daily Mail

National rent rises reveal ‘dysfunctional market’

The mid-west is experiencing a property boom with house prices up by more than a fifth in the past year – almost three times the national average.

The 21% average price hikes in Clare, Limerick and North Tipperary compare to just 4.2% in South Dublin, according to the Central Statistics Office.

Nationally, prices are up 8.2% in the year to September, which is significantly behind the rate of rent increases nationally at 11.3% – a difference described as ‘stark’ by experts.

Renting is almost twice as expensive as paying a mortgage in some areas and is holding back many hopeful homebuyers from saving up a deposit.

Brokers Ireland director Rachel McGovern said: “The rent and house price trajectories are going in opposite directions. The divergence between servicing a mortgage and paying rent for a similar property is stark, with it being substantially more expensive to rent in almost every area of the country. ‘The figures point to a truly dysfunctional market.’

Joey Sheehan, head of credit at mymortgages.ie, said: “With mortgage rates now more competitive than they have been in a long time, it’s safe to say that in most counties in Ireland, the average rent would indeed far exceed a mortgage on the same property.”

The average property price nationwide is just below €300,000, while in Dublin its just above €443,000. Dun Laoghaire Rathdown is the most expensive are a in the capital, with an average of almost €614,500, while South Dublin was the cheapest, with an average of €357,625.

After Dublin, the next most expensive region was the mid-east, with an average of just over €288,00. Within the mid-east, Co. Wicklow reached No.1 spot, with an average price of almost €357,600.

The cheapest region for house purchases was the border region with an average of €132,820 with Longford adding up to be the most affordable county with an average price of €105,855.

Experts put the strong growth in the mid-west down to the region playing catch up and its low base which means price increases translate to large jumps translate to large jumps in percentage terms.

Dr John McCarthy of Savills said: “The price growth in the mid-west down is up 21%, extraordinary. But what I’m noticing is a slowdown in investment purchases, and yet overall the total number of transactions compared to last year is up a little bit so it’s first-time buyers making up the difference.

The mid-west is experiencing a property boom with house prices up by more than a fifth in the past year – almost three times the national average.

The 21% average price hikes in Clare, Limerick and North Tipperary compare to just 4.2% in South Dublin, according to the Central Statistics Office.

Nationally, prices are up 8.2% in the year to September, which is significantly behind the rate of rent increases nationally at 11.3% – a difference described as ‘stark’ by experts.

Renting is almost twice as expensive as paying a mortgage in some areas and is holding back many hopeful homebuyers from saving up a deposit.

Brokers Ireland director Rachel McGovern said: “The rent and house price trajectories are going in opposite directions. The divergence between servicing a mortgage and paying rent for a similar property is stark, with it being substantially more expensive to rent in almost every area of the country. ‘The figures point to a truly dysfunctional market.’

Joey Sheehan, head of credit at mymortgages.ie, said: “With mortgage rates now more competitive than they have been in a long time, it’s safe to say that in most counties in Ireland, the average rent would indeed far exceed a mortgage on the same property.”

The average property price nationwide is just below €300,000, while in Dublin its just above €443,000. Dun Laoghaire Rathdown is the most expensive are a in the capital, with an average of almost €614,500, while South Dublin was the cheapest, with an average of €357,625.

After Dublin, the next most expensive region was the mid-east, with an average of just over €288,00. Within the mid-east, Co. Wicklow reached No.1 spot, with an average price of almost €357,600.

The cheapest region for house purchases was the border region with an average of €132,820 with Longford adding up to be the most affordable county with an average price of €105,855.

Experts put the strong growth in the mid-west down to the region playing catch up and its low base which means price increases translate to large jumps translate to large jumps in percentage terms.

Dr John McCarthy of Savills said: “The price growth in the mid-west down is up 21%, extraordinary. But what I’m noticing is a slowdown in investment purchases, and yet overall the total number of transactions compared to last year is up a little bit so it’s first-time buyers making up the difference.

“New house-building, in particular, is allowing first-time buyers to get their feet on the property ladder.

Source: Daily Mail 15 November 2018

 


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