Property prices up for 12th month in a row with rises now in double digits
New figures from the Central Statistics Office (CSO) show that price rises are now in double digits.The latest property price figures come as the European Central Bank is poised tomorrow to deliver its third rate cut this year.That is likely to keep the property market overheating.CSO statistics show prices increased by 10.1pc in the year to August. This compares with a rise of 9.6pc in the year to July.In Dublin, they were up by 10.8pc in the year to August, and prices outside Dublin were up by 9.6pc.Prices were up 0.9pc in the month of August alone.The median, or mid-point, price of a dwelling purchased in August 2024 was €345,000.The lowest median price for home was €175,000 in Longford, while the highest median price was €635,000 in Dún Laoghaire-Rathdown, the CSO said.The most expensive Eircode area over the 12 months was Dublin 6 with a median price of €725,000.Clones, in Co Monaghan, had the least expensive price of €135,000.The surge in prices is despite fewer sales going through.In August, 3,990 home purchases at market prices were filed with the Revenue Commissioners.This is down by 14pc when compared with the 4,640 purchases in August last year.A chronic shortage of homes to buy is forcing buyers to offer more each month to secure a home.This is particularly the case with second-hand homes, where there is an acute shortage.CSO statisticians said existing dwellings accounted for 3,207, or 80pc, of the dwelling purchases filed in August.This is a decrease of 17.4pc compared with August 2023.The balance of 783 (19.6pc) were new dwellings, an increase of 3.6pc compared with August last year.New home prices, in the three months to June, were 7.4pc higher than in the corresponding quarter of last year.Prices of existing dwellings in the second quarter of 2024 were 8.6pc higher than in the corresponding quarter of 2023.The national property price index has now reached the value of 185.6, which is 13.4pc above its highest level at the peak of the property boom in April 2007.Dublin residential property prices are 1.8pc higher than their February 2007 peak, while residential property prices in the Rest of Ireland are 14pc higher than their May 2007 peak.Meanwhile, the European Central Bank (ECB) is poised to deliver its third rate cut this year tomorrow.It is expected to reduce its refinancing rate, the one trackers are priced off, by 0.25 of a percentage point to take it to 3.4pc.And a similar sized cut is expected in December.Independent economist Simon Barry said markets were pricing in a total of 1 percentage point in cuts next year.December’s reduction and a series of cuts next year could take the refinancing rate to 2.15pc.That would mean a typical tracker mortgage rate will have fallen from 5.5pc to 3.15pc by the end of next year, if all the predicted cuts are implemented.Mr Barry said markets are “anticipating another 0.25 of a percentage point cut in December and a further 1 point of easing over the course of next year”.ECB policymakers will meet in Slovenia to decide whether to reduce rates further and up the tempo of cuts.The central bank is headquartered in Frankfurt but sometimes holds monetary policy meetings in other parts of the eurozone.Close to 130,000 tracker mortgage holders will be the main beneficiaries of the latest ECB cut.
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