House Prices Have Finally Slowed Down But Majority Of Houses Still Unaffordable

New research shows that house prices in Dublin and other Irish cities are "flatlining" with little to no increase in the last three months.

According to data from Real Estate Alliance (REA) has found that semi-D house prices in Dublin postcoded areas have risen only 0.1% compared to 4.1% for the same period last year.

However, they still remain out of reach for many "ordinary families".

After rising by 12.5% in 2017, the average price of a second-hand semi-detached house in the capital has increased by just €5,300 so far this year and now stands at €443,333.

Prices in the north of the county have risen by 7.5% in the past 12 months, and 0.8% since June to an average of €322,500.

This is in stark contrast to South County Dublin where prices are static on the quarter and have risen by just 2.4% since last September, with the average three-bed semi selling for €410,000, and the time taken to sell rising from five to six weeks.

The flatlining has occurred despite 18 months of built-up demand for accommodation.

Other cities like Cork and Limerick have also flatlined with prices stopping at €317,500, the same as it was in June.

Semi-detached houses in Limerick are stuck at €200,000 with the REA attributing it to families being unable to afford anything higher, with strict limits on mortgages also in play.

“There is no doubt that the Central Bank rules are having an effect in the market, and are achieving what they set out to do in terms of keeping a lid on prices,” said REA spokesperson Barry McDonald.

The price of a three-bed semi-detached house in Dublin has increased by just 2.7% in the last 12 months as the Central Bank’s borrowing rules increasingly define affordability in the housing market.

Despite the static figures in Limerick and Cork city both Waterford and Galway have recorded increases of 2.5% and 0.9% respectively.