Irish Housing Market May Yet Reach Bottom

Of all the Eurozone countries it may be Ireland’s housing market that has taken the worst beating. Home values have been plummeting since the onset of the global …

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Of all the Eurozone countries it may be Ireland’s housing market that has taken the worst beating. Home values have been plummeting since the onset of the global financial crisis and there has been no sign of hope, but a recent 0.2% rise in prices may hint at a bottom in the market. Property prices in Dublin are between 57% and 63% lower than their peak and the overall country average is 50% lower than the peak. Local and international buyers are responding to the deals and experts say that and the fact that construction has all but ground to a halt may finally be helping boost values. For more on this continue reading the following article from Property Wire.

Residential property prices in Ireland increased by 0.2% in July following a fall of 1.1% in the previous month, signalling hope that the market may be close to bottoming out.

The latest figures from the Central Statistical Office also show that on an annual basis prices are down by 13.6%, less than the 14.4% seen in June. Although overall the situation is positive, in Dublin residential property prices fell by 0.3% in July and were 16.6% lower than a year ago.

Dublin house prices decreased by 0.2% in the month but were 16.7% lower compared to a year earlier while apartment prices were 19.6% lower when compared with the same month of 2011. The price of residential properties in the rest of Ireland rose by 0.3% in July compared with a decline of 1.3% in July last year. Prices were 12.1% lower than in July 2011.

It means that house prices in Dublin are 56% lower than at their highest level in early 2007 and apartments in Dublin are 63% lower than they were in February 2007. Overall residential property prices in Dublin are 57% lower than at their highest level in February 2007. However, the fall in the price of residential properties in the rest of Ireland is somewhat lower at 47%. Overall, the national index is 50% lower than its highest level in 2007.

Experts believe that the Irish real estate market is drawing ever closer to bottoming out. According to the head of Bank of Ireland, Richie Boucher, the Irish real estate market is beginning to stabilise, in particular in urban areas. There has been a sharp rise in demand for Irish real estate from national and international home buyers in recent months, following one of the severest property crashes ever witnessed anywhere in the world.

Tight mortgage lending conditions and a general oversupply of homes combined with severe economic problems have hit the residential property market hard. Experts believe that with house building having come to a virtual halt, much of Irelands housing glut has now been absorbed by purchasers, particularly in urban areas, thanks mainly to significantly cheaper home prices. According to the latest Daft.ie Irish real estate report, the average price of a home in Ireland has declined by an average of 53% since the peak of the market in 2007.

This article was republished with permission from Property Wire.

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