Ireland is slowly emerging from the recessions.
After the “boom” of the housing market in the early 2000s (when the “Celtic Tiger” was roaring loudly), with house prices that had risen to almost four times higher than in the previous decade, the financial crisis started in 2006 dragged with it this slice of the market, in a sudden and shocking reversal.
In some areas of the Country, outside the big cities (especially in Ulster, Munster and Connacht) symptoms of the recession are still being felt in the housing market, with prices falling fast (up to 13% less only in 2012) and with the lowest percentage of sales within the four months (reasonable time to find a buyer).
In Dublin and other major cities of Ireland (Cork, Kilkenny, Limerick) the market seems to be stabilizing -finally- at the beginning of 2013, suggesting a positive outlook for investors in the near future.
The collapse in house prices is therefore slowing down in the last period (in 2012 only 1% drop in the north-zones of the capital, it was nearly 20% last year). This does not mean that it is not a good time to look for a house in Dublin: average-prices are still lower by about 90% compared to 5 or 6 years ago!
The house market confirms Dublin among the healthiest cities of the Republic, with the average price of € 214,000 to buy a house in June 2012 (it was € 217,000 in December 2011).
Looking at the prices, the situation in the capital is therefore attractive to buyers and for investors.
Over the past two years, the availability of properties for sale (not for rent) has fallen by about 50%. In the rest of the Country, the decline has been lighter, about 20%.
In the capital there the “time to sell” is improving: the number of houses sold within four months rose from about 30% to a more encouraging 40% during the last year.
The balance between supply and demand seems to be almost reached in Dublin. Someone says it’s time to plan the construction of new real estate for the next decade!
Here is a map that clearly shows the trends in house prices in 2012. Click on the image to enlarge it.
