Two new reports from daft.ie and myhome.ie released this morning show that house price growth slowed in the second quarter. It appears a combination of demand (Central Bank macroprudential rules) and supply (increased level of new build) is behind the slowdown in the rate of growth.
Both of the property website reports contain consistent findings on the market in the second quarter. Myhome.ie reports that price growth slowed to 7.2% year on year (yoy) in second quarter, down from 9.5% yoy in the first quarter. This is the slowest pace since late 2016. Daft.ie puts price growth at just 5.6% yoy, the lowest since 2014.
Stock levels rose in the second quarter – up 5% nationally, according to daft.ie – the first increase since the series began in 2009. The increase in supply is led by Dublin, with myhome.ie reporting that the stock for sale is up 25% yoy, while daft.ie puts the current stock for sale in Dublin at the highest since mid-2015. It must be noted, however, that this is coming from record low levels.
According to Goodbody Stockbrokers, "After the double-digit growth in house prices over the past twelve months, a slowdown is something that is to be welcomed. Given that it is Dublin-led, it is likely that the uptick in new supply and the deterioration in affordability due to this rapid growth is playing a role. We are forecasting a slowdown in price inflation from 12% in 2017 to 9% and 6% in 2018 and 2019, respectively."