House price inflation is set to accelerate in 2017 to 8% driven by the economic recovery and an ever-tightening housing market according to the latest house price survey fromMyHome.ie in association with Davy.
However the report warns that the combined impact of the Help-to-Buy scheme and looser lending rules means that double-digit house price inflation is a distinct possibility in 2017.
The warning comes despite a subdued end to 2016 which saw the prices of newly-listed properties on the MyHome website fall 2.2% on the quarter, in line with normal seasonal patterns. However prices nationally are up 5.5% year on year.
While asking prices on new instructions – which provide the best leading indicator for actual transaction prices – fell by over 2% in Q4, bringing the mix adjusted asking price for new sales nationally to €227K – they are still up 5.5% year on year.
In Roscommon median asking prices across all property types remained flat at €110K. However the price of 4 bed semis fell by 6% to €84,500, contributing to the biggest annual decline recorded in the country for this house type of 32%. The price of the most popular house type, the 3 bed semi, also fell in Q4, down by 3.5% to €64,500 leading to an annual decline of 3.7%. The price falls mean Roscommon is the cheapest county in the country to purchase a 3 or 4 bed semi.
