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House prices down 3.3% so far this year, rents up 0.2% – Daft.ie

House sale prices fell by an average of 3.3% in the year to June, according to the latest Daft.ie Housing Market Report. 

Daft.ie’s new monthly report looks at the health of both the sale and rental markets, with figures showing a 0.2% rise in rents nationwide in the year to June this year.

The report reveals that the average listed sale price nationwide last month stood at €253,868, while the average monthly listed rent was €1,402. 

Average Dublin house prices stood at €369,000 in June, while the average Dublin rent reached €2,023, Daft.ie said.

Most parts of the country showed similar trends, with an annual fall in sale prices ranging from 2.9% in Leinster to 4.9% in Munster. House prices sales fell by 3.8% in Dublin.

However, sale prices were up by a modest 0.7% on average in Connacht and Ulster, Daft.ie said. 

Rents were also fairly stable in the year to June, rising by 0.5% year-on-year in Dublin while they rose by 1.2% in the rest of Leinster.

But rents in Connacht and Ulster are down 2% year-on-year, Daft.ie added.

Today’s report also noted that the number of properties posted for sale or to rent during June showed a sharp recovery in market activity in June, compared to April and May. 

There were over 5,200 properties listed for sale in June, compared to roughly 2,000 in both April and May. 

Daft.ie said that while those two months had seen activity collapse by three quarters, the number of homes advertised in June was just 15% lower than in the same month in 2019. 

In the rental segment, there were 38% more homes advertised to rent in June 2020 than a year previously, with Dublin driving this trend.

Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, said that market activity rebounded strongly in June, perhaps reflecting an element of pent-up demand carried over from April and May due to the Covid-19 outbreak.

“This is particularly the case for sales, where over 5,200 homes were listed for sale during the month, compared to roughly 2,000 in both April and May. Nonetheless, the figure remains below the total for June 2019,” he noted. 

He noted that significantly more homes were listed for rent in June this year than last, adding that the concern remains that policymakers see this as the underlying problem solved. 

“While the new government may want to favour the construction of owner-occupied homes, the fundamental shortages are in the social and market rental segments and it is those segments that must be the focus for policymakers over the coming years,” he stressed.

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