After years of strong growth, housing prices in Ireland are showing signs of slowing. That’s the news coming from several sources about what has been one of Europe’s strongest economies in recent years. This is potentially good news for the international real estate investor looking to get into one of the best markets in the world.
The Ireland Times (www.irelandtoday.com) and Finfacts Ireland (www.finfacts.ie ) both report that prices in May fell for the first part of the year and in the month. Prices were down 2.1% nationally through May for the year, compared to an increase of 6.7% for the same time last year. In May the average price paid for a house was €304,166 compared to €310,632 in December of 2006.
While this may be bad news for recent buyers and those who need to sell, it makes it a wonderful opportunity for investors looking to get some good deals on property. The slowing sales indicate that first time buyers and those who are looking for second homes are getting a better deal now and finding some slightly more affordable housing.
Specifically, in Dublin prices in May decreased 1.2% from the previous month while there was a decrease of .8% in housing purchased outside of Dublin. The average price paid for a house in Dublin in May, 2007 was €424,631, compared to €427,343 in December, 2006.
New housing has taken a big hit as construction is starting to slowdown across the nation. In June, new housing construction decreased at fairly sharp rates. While things have slowed down somewhat in the housing market, the outlook for the long term is still very good, according to a report in Finfacts Ireland. With the slowdown has come decreased supply and prices should stabilize and possibly even rise before too long. Overall, the economy in Ireland is still solid and confidence is also strong.
