The latest figures from Ireland's Central Statistics Office showed that property prices declined by another 0.4 percent in Dublin for the month of June. In a report from rte.ie, the June 2015 figures are still 11.1 percent higher than June of 2014. Overall, Ireland's home prices rose by 0.1 percent for the month of June.
The residential property prices outside of Dublin increased by 0.4 percent in June but this is a far cry from 2014's rate of increase which was at 9.7 percent. Overall, Ireland's residential property prices at the end of June 2015 were at 37.4 percent than the record highs achieved back in 2007.
Savilis Director of Research John McCartney, in a report from irishexaminer.com, said the figures confirmed the current cooling of the housing market in Dublin, as prices declined by 1.1 percent in the year to date.
He added, "This slowdown was probably inevitable, given the very rapid price growth seen between April and October 2014, but it also reflects the impact of tighter mortgage lending rules which have been in place since February. Agents are reporting that there has been a definite cooling in the market. Agents are reporting that there has been a definitive cooling in the market. As the CSO index lags the market by three months this means the rally that has been seen in the second half of recent years is unlikely to materialize in 2015."
"Therefore, we expect price growth to be modest at best for the remainder of this year. Looking further ahead, the detailed demographic data show Dublin's population has picked up strongly as people follow the jobs," said McCartney.
He said, "Given sluggish house building, this will keep upward pressure on prices in the long run."
The long term effect on the Dublin and Irish market is still yet to be seen.
