Property prices in Ireland rose in the first quarter of 2016, but reports say that the increases actually "mask true dysfunction of property market."
As reported by Independent.ie, there is "increasing evidence of a market crisis" in the country, according to Marian Finnegan, economist at estate agency Sherry FitzGerald. The agency said the stock of properties available for sale hit the lowest level with only 26,800 units listed in the market in January, a measly 1.4 percent of the private housing stock.
Sherry FitzGerald research also showed that more foreign investors are selling off their properties in the country. As much as 46 percent of sales accounting for investors offloading their assets while only 19 percent of the sales are purchased by investors.
"The level of price inflation in the opening quarter was largely consistent with the same period in 2015, and notably lower than the opening quarter of 2014. That said, such figures do mask the true dysfunctional nature of the market," Finnegan said.
Finfacts reported that according to data from Daft.ie, the total number of properties for sale hit a nine-year low in the first three months of this year at less than 24,000. Meanwhile, house prices rose 5.9 percent in the year to March 2016. The report said that the average asking price nationally in the first quarter of 2016 was €210,000 from €198,000 a year earlier.
In Dublin, the price was stable at only 0.9 percent increase on the year, but in other parts of the country the average price rose an average of 9.7 percent. Cork saw 14.9 percent increase in home prices, while Galway jumped 14 percent and Limerick and Waterford both surged 18 percent. The increases are attributed to the growing population, the lack of new homes and the shortage in housing supply.