The continued slowdown in the rate of house price growth seen in today’s CSO figures is as expected, according to property consultants Savills.
Commenting on the figures, Savills’ Director of Research, Dr. John McCartney said; “On one hand it reflects a base effect. Dublin prices have been rising at double-digit rates since the middle of 2013. With base prices increasing it simply gets harder to sustain the same percentage rate of increase.”
However, there are additional factors at play; “With prices continuing to rise more quickly than earnings affordability constraints are beginning to have an impact. This has removed some of the heat that was evident in the market in the middle of last year.”
McCartney continued; “Agents are now reporting that buyers are no longer in a frenzy to buy for fear that prices will run beyond their means. This is a very positive development as expectations of rapid price growth can become self-fulfilling and can quickly lead to overheating.”