Last year was the best year for house price growth in seven years and 2015 will see further price increases, although at more modest levels, according to the latest house price survey from MyHome.ie.
According to the report, the price of four bed semis in Clare rose by 4.3% in the last quarter to €138,000. This brings the annual rate of growth to 6.4%.
However, the price of three bed semis fell by 4.1% to €105,000. This means that the percentage fall from the peak of the market is almost 61%, which is the biggest decline for this house type in Munster.
Caroline Kelleher, DKM Economic Consultants, said that while there was strong price growth in 2014 – the national mix adjusted asking price rose by 2.6% to stand at €194,000 – and strong transaction activity, uncertainty over a number of new developments in the market are likely to dampen the rate of price increase in the coming year.
“The Central Bank’s new guidelines on mortgage lending which are expected to introduce a loan to value limit of 80% for new lending, along with separate proposals to restrict any residential mortgage to 3.5 times gross annual income, have the potential to limit the rate of price increases seen in recent times” Ms Kelleher said.
“However there is some uncertainty over whether or not these will be implemented as originally outlined. In addition the relief on capital gains tax introduced in 2011 to incentivise the purchase of property has terminated and this is likely to stem the rate of investment in buy to let properties in 2015” she added.
Ms Kelleher’s comments were supported by the latest figures which show a slight moderation in the rate of increase. In Q4 the mix adjusted average asking price nationally grew by 0.6% – down from 1.4% in Q3 – while the corresponding increase in Dublin was 2.2% – down from 3% in Q3. The latest increase brought the mix adjusted average asking price in the capital to €269,000 and the annual percentage increase in Dublin to 11.4%.
There was even stronger price growth for new instructions with the median price nationally up 16% in the year to Q4, while in Dublin the median price increased by 18%.
The Managing Director of MyHome.ie Angela Keegan said the substantial rise in transactions during 2014 was most welcome, as was the price growth recorded for three and four bed semis in most counties around the country.