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FOR THE FIRST time since 2008, the price of properties around the country has risen.
In the year to June, house property prices at a national level, increased by 1.2 per cent, according to figures from the Central Statistics Office.
It compares with an annual rate of decline of 1.1 per cent in May and a 14.4 per cent fall recorded in the 12 months to June 2012.
The property prices grew by 1.2 per cent in the month of June, compared with an increase of 0.3 per cent recorded in May and a fall in prices by 1.1 per cent in June last year.
In Dublin, residential property prices grew by 1.7 per cent in June and were 4.2 per cent higher than a year ago. While the price of residential properties in the rest of Ireland (excluding Dublin) grew by 0.7 per cent in June compared with a decrease of 1.0 per cent in June last year.
Overall, the national index shows that property prices are down by 50 per cent since their peak in 2007.
House prices in Dublin are 54 per cent lower than at their highest level in early 2007, while apartments in Dublin are down 58 per cent.
The fall in the price of residential properties in the rest of Ireland is somewhat lower at 48 per cent.
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Imagine a world were people weren’t that hung up on property. They paid a €400 a month in a mortgage for decent housing and spent the rest of their earnings on actually enjoying life.
Comment of the week!
yera feck off back to Finland with your 5% unemployment and reasonable property.
We’ll stick with the likes of Micheal Martin and his Galway tent masters fleecing us.
Why settle for 400 a month when you can screw 800 a month just by fixing the market. :) Luv Capitalism!!
Comment of the Year! Well Done.
This article has been brought to you by Young’s!
I’m a Magician. I’ve managed to turn an asset valued at €720k at purchase into approximately €360k now.
I thank you very much. I’m here all week!
Gotta laugh or you’d cry.
;)
Very vague article.
Any chance of supplying the source of this data.
Asking prices are very different from actual sold prices.
Not as much as you may think. I’v just sold one of my properties and it got 5k over the asking but having said that it was priced reasonably well to begin with. It’s an illusion that sellers are asking for way over the odds for properties and as the market continue to rise in Dublin the prices will increase also. A drought on family homes in south Dublin means they are snapped up close to the asking relatively quickly. And No I’m not an estate agent!
Eh…its there in black and white. Source is the cso and its based on actual purchase not asking prices
I’m sorry but your comment is just about as vague as the article Ryan’O.
Sorry Alan.
I can’t find where it says that increases are based actual sold price in the article?
Can you point out where it says that in the article?
You have a keyboard. Type cso into a search box.
It’s o.k Tommy.
I’m sure the article was well researched.
I’m must be off.
I’ve got to get into the market while there is still a chance.
There are some lovely houses on Daft.ie website.
It’s the value of the currency that is volatile, a brick is still a brick and always will be.
Homeowners are so lucky. The 20-something generations will never get that. It’s not so nice knowing that I’ll be renting off some rich f-er for my whole life because bankers are lining their pockets with my wages.
Don’t you know you’re not supposed to read the article, just read the headline, that’s all you need to know.
And be more careful in future. The last thing we need right now is informed comment.
Thats it folks, ya better get on the ladder soon or you’ll miss the boat!!
Good comment Tom , the price never changes , gold is the same as it it was 50 years ago ,what haoppens is the fiat currency devalues.
Along with banning porn, can we also ban property porn?
Yawn, another property pimping article by the journal.ie in close partnership with daft.ie and other vested interests. For the truth about the current property market in Ireland without the spin visit collapso.net or thepropertypin.com .
Thanks Marcus.
Will do.
Why keep comparing everything to the peak of the bubble (it wasn’t a boom. … a bubble) .. those prices had no relevance or sanity about them.
As long as week keep using 2007 / 2008 as reference points we have no idea of what a healthy property market is.
until a 3/4 bed semi in the greater dublin suburbs are being sold at about €150k the market isn’t normal.
They say you should never take a mortgage out for more than 2.5 times your salary, therefore a couple earning €70,000 combined should not take a loan out for more than €175,000 MAX on a house. Some clowns in Ireland were getting loans of €450,000 while earning salaries of €50-60K. Then they wondered why they couldn’t pay them back.
Do you mean net salary?
That’s a good way to see what you can afford.
Before interest rates dropped from 8% in the early nineties the banks used to say
2.5 times the main earners salary and once the secondary income. It should still be that IMO. It would help stop prices going crazy and ensure people can afford the loans they take.
“The banks used to say. . . .” And they knew what they were talking about ?
Imagine that…banks lending to people a sustainable amount of money…the madness of it!
So even if Mr. PAYE asks for a million quid they’ll only be lent 100k…why?…because Mr.Banker has learned how to follow guidelines.
Pity they have screwed a generation during their learning process….
@brian. I think if they kept to that policy we wouldn’t have had the bubble that got so out of control.
The problem is they didn’t. They offered 110% mortgages and used all manner of complicated economics to ensure someone on minimum wage could take out a mortgage for €200k plus.
My house was valued at €325,000 in 2005, it’s now valued at €110,000
Both my house in 2003 €160,000
house topped €300,000 by 2006 ,
now just worth €100,000
Bought my house in 2008 for €260k on a 200k mortgage. It’s worth around 140k now. Couldn’t really have picked a worse time to buy but sure no one was saying that at the time. :)
Honest question: why top up by €300k? That would be some refurb/extension on a house that only cost €100k when u bought it. Just asking as heard similar story on Ray Darcy last week and can’t figure it out.
@ Maria I’m only guessing but I think he mean the market value of his house hit 300K in 2006, his actual drop is €60K but just highlighting the madness that went on from 2000 – 2006/7!
no maria I didn’t top up to €300,000 , I topped up by €25,000 in 2005
i said the house was worth €300,000 by 2006. (in the middle of the madness)
I wasn’t stupid enough to buy but still have to suffer listening to people moaning about how much they’re in negative equity
Paul,
I wasn’t stupid either. It’s not my fault the market crashed when it did. You were just lucky you didn’t buy.
Hindsight is 20/20.
You’re pretty stupid in fairness. The writing was on the wall since 2006. The credit crunch occurred in 2007. You must have known you were buying in one of the biggest property bubbles of all time, one that had yet to burst.
Lucky? No I sat down with a calculator and decided €250,000 was too much for me to borrow and opted out.
It’s not your fault the market crashed but paying whatever you paid for whatever you got was plainly stupid! Im not saying you’re a stupid person but you get my point
Okay, time to start selling our houses to each other again, helping push the prices up an we’ll all become millionaires.
I’m in JP.
Just waiting for the banks to supply the money (again).
I’ve a spare room in my house if anybody wants to use it for free.
Thanks Michael. I’ll take you up on that. You were great in Austin Powers,
Thanks Micheal.
I’ll take you up on that.
You dont mind if I fit a lock on the door?
Of course you can..but there is a door between my room and the spare room and that remains unlocked at all times..
Is it this one with the blood splatters on………..
Reminds me of that old chestnut…..”how do you create a small fortune out of property?”…..”Start with a large one.”
Even with property at half of what it was in 2007 it is still way over priced.
Maybe you just need to lower your expectations, Martin.
Bought mine in 2003 dont give a fu@k what its worth , I can just manage the mortgage , kids have a roof over there heads.its a family home cant put a price on that
Someone needs to… That’s what a buyers market means.
Not long before the carpet bagging begins in earnest….
Not at all i own my own home thanks.
I’m glad to hear they’re getting back up a bit, I hope they don’t ever get back up to crazy levels with people having to fork out huge amounts of money for houses though.
“We’ve hit the bottom” headline for the sixth year running. A bit to go yet.
Houses are at €150k in many areas, mine is 30 mins from Dublin and not even at that mark, how low can they go, not much lower no way !
Why not? These types of properties were selling for £60K in the mid to late 90s in a buoyant market. Why are they still way overpriced in comparison?
Well said Tommy.
Very accurate.
A few short years ago, a working man could buy/build a decent family home for 40-50k with 3-4 years hard saving (sometimes with the help of a small short term credit union loan).
We have gone from that to
100%
40 year
10x times salary
Interest only mortgages
with low introductory rates.
In the hundred of thousands.
With property taxes, water charges etc etc etc.
The banks, government and the media have turned people’s homes into their Cash Cow.
It will end bad for all parties.
Nice graph here.
http://www.statusireland.com/statistics/property/3/Irish-House-Prices-Since-1996.html
The average price is about 150K now. Given the massive property crash we’ve had does it make sense that houses are double the price they were in 1996?
That’s more like it Tommy.
You could buy a house in any major city in the country (Dublin included) in the 90′s,
with a 15 year capital and interest mortgage.
The monthly rent from the property would pay the full mortgage payment and give you an extra hundred quid or so per month to do the vital repairs, refurbishments, replacements on the property.
You would own the property outright after 15 years and could sell it at a modest (but assured) profit or hold onto it for a modest (but assured, (as long as you keep it in good condition)) rental income.
It has gone from that stable, mature, modest system based on REAL fundamentals
to being an all out Ponzi Scheme type feeding frenzy based on hype, spin and 30-40 year mortgages recklessly dished out by corrupt/criminal banks.
Are the banks and their vested interests trying to put a false floor in their Ponzi Scheme?
Got my house valued and rebuild was put at 150000. 3 bed semi
Build costs are not directly related to market prices. Plenty of 600sqm boom houses in the sticks are selling for a fraction of their build costs.
My house is worth a third of what we paid in 2005.
Congratulations Barbara.
The best/worst I’ve seen was around the one tenth mark.
Barbara?
It’s not as if you slept together…
Sorry Sandra.
We might have Paul.
Can’t wait until house prices go up so I can afford cheaper food.
Can’t wait until house prices go up so I can get a permanent job.
Can’t wait until house prices go up so we can get rid of cronyism in the Dáil.
Can’t wait until house prices go up so I can be convinced that capitalism isn’t just boom and bust.
?
Who cares if they go up or down by x amount,or just stand still and dont move at all,all i just want to do is live in it,right.
Half only ..? I wouldn’t be able to give mine away!
Once property levels fall to levels were they can be afforded with a mortgage of 2.5 times the average salary, they will be worth buying. At current levels people are still borrowing way too much, over 5 times salary levels. This is what has is in over our heads. Lower prices are better over the long run
Tommy that’s called heaven
I’d expect house prices to stay where they are until the quantitive easing from fed, bank of england and ecb causes high inflation in the real economy, then interest rates will start to climb which will cause further downward pressure on prices. Peolpe in 5 to 10 years time will be getting mortgages at 90s prices with higher interest rates while those on trackers and variables from the past 10 years or so will be fooked!
Only the rich are buying homes now or criminals who pay cash…. Actually there both one of the same
Could somebody please tell Richie Boucher and his employers what this means. If the asset value that backs up the loan is not there, you won’t find market support for your bank.
Wake up Enda, please.
‘I dont know what a tracker mortgage is’
Here we go again.. fool me once shame on you..fool me twice shame on me!
Pointless talking about house prices while over 100k mortgages are not being paid and renters get evicted with 28 days notice. Market is totally rigged right now.
So are my wages half than they were in 2007
We all partied etc…….
The Dublin market is very unhealthy right now. I appreciate people in NE and who already own property have an interest in a “recovery” but surely we all need to see that we should not as a society aim for rising or high property prices. Even if you are a homeowner, bear in mind that your friends, siblings, children or nieces and nephews will need to buy houses – do you want them to pay high prices? It really is a drag on society and the economy, all that money pumped into servicing debt just to live in a decent house. Any 3 bed house in a good location is back to costing crazy money, this is ultimately being driven by the banks who control the flow of credit into the market.
After what the housing “boom” did to the country, there is still absolutely nothing stopping it happening again. No limit of borrowing amounts, no cap on LTVs, no minimum deposit %, no ban of 100% mortgages. The banks have nothing to fear from lending recklessly because if it all goes wrong then the taxpayer will pick up the tab, as well they know now.
It is beyond time for a serious discussion over housing policy in this country, but we simply do not have the political or intellectual class capable of initiating it.
Absolutely nothing has been done to stop it happening again.
have your say