House prices in Mayo rises six per cent according to latest report

Photo:Daft.ie

Photo:Daft.ie

The latest Daft.ie house price report has indicated that prices in Mayo have risen by six per cent. The report found that house prices in Mayo between October and December 2015 was on average €122,000 which was six per cent higher than in the same period in 2014 and ten per cent higher than prices were at their lowest point.

Nationally house prices rose by an average of 8.5% during 2015, according to the latest report released today (Monday, January 4 by Ireland’s largest property website, Daft.ie This national average hides a significant difference between Dublin, where prices rose by just 2.7 per cent, and the rest of the country, where the average increase was 13.1 per cent. The national average asking price in the final quarter of 2015 was €204,000, compared to €188,000 a year ago and €164,000 at its lowest point in early 2013.

The different trends in Dublin and elsewhere marks a turn-around from 2014, when prices rose by 21% in the capital and by 9% elsewhere.  This slowdown in Dublin inflation occurred at a time when inflation in Ireland’s other cities accelerated. Prices rose by an average of 20.7% in Cork in 2015, compared to 14.7% in 2014, and by 19.7% in Galway (compared to 16.3% in 2014 ).

Commenting on the figures, author of the Daft.ie Report Ronan Lyons said: “The dramatic slowdown in Dublin house prices in 2015 shows how effective the Central Bank rules have been. This has not been the case elsewhere in the country as house prices are lower relative to incomes and thus the new rules have not been as binding. Some have criticised the new rules as hindering new housing supply but the solution to a lack of supply is not stimulating demand even more. If supply is lacking, the solution to this must be found in reducing construction costs, not in giving borrowers access to potentially dangerous levels of mortgage credit.”

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