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Good News - House Prices Expected To Slow Down Dramatically

By Jen

July 18, 2018 at 12:02pm

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We thought the day would never come.

Property agents Savills is expecting a sharp slow down in house price growth as house supply increases.

According to the Irish Times, the first indication of this "cooling off" should be revealed this week in the official house price figures for May.

Sean O’Malley, senior economist at Savills said, "housing completions were up 46% in 2017 and, despite weather-related disruptions, this continued in the first quarter in 2018, with a 27% year-on-year expansion."

He explained that while we still have a long way to go in terms of supply, the increased construction activity is starting to bridge the gap between demand and supply.

“The impact of this will be to gradually moderate the rate of house price growth,” he added.

The senior economist expects annual property price inflation in Dublin to drop from 12.5% to about 8%.

If this happens, it will be in sharp contrast to the official figures for April when official figures for house prices jumped a massive 13%.

Is this the beginning of the end for rising house prices?

READ NEXT: Things Are Going To Start Heating Up Again This Weekend

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