Irish property market bottoming

Residential property prices in Ireland increased by 0.2% in July following a fall of 1.1% in the previous month, signalling hope that the market may be close to bottoming out.

The latest figures from the Central Statistical Office also show that on an annual basis prices are down by 13.6%, less than the 14.4% seen in June. Although overall the situation is positive, in Dublin residential property prices fell by 0.3% in July and were 16.6% lower than a year ago.

Experts believe that the Irish real estate market is drawing ever closer to bottoming out. According to the head of Bank of Ireland, Richie Boucher, the Irish real estate market is beginning to stabilise, in particular in urban areas. There has been a sharp rise in demand for Irish real estate from national and international home buyers in recent months, following one of the severest property crashes ever witnessed anywhere in the world.

Tight mortgage lending conditions and a general oversupply of homes combined with severe economic problems have hit the residential property market hard. Experts believe that with house building having come to a virtual halt, much of Irelands housing glut has now been absorbed by purchasers, particularly in urban areas, thanks mainly to significantly cheaper home prices. According to the latest Irish real estate report, the average price of a home in Ireland has declined by an average of 53% since the peak of the market in 2007.