New deposit rules impacting on house sales

THE price of an average three-bedroom semi detached house in the Fingal area declined by 1.97 per cent in the first three months of 2015, with an overall 2.28 per cent increase in prices in the last six months.

That’s according to a national survey carried out by Real Estate Alliance (REA).

In Skerries, prices have dropped by

?¬20,000 in three months, with the average semi detached home now costing

?¬290,000, with REA agents noting the impact of the Central Bank’s new deposit rules and more cautious buyers.

While demand is high for properties close to the

?¬220,000 threshold, the Central Bank’s restrictions on deposit requirements have had an immediate effect on the capital’s housing market, with lack of suitable supply another major factor.

The Real Estate Alliance average house index concentrates on Ireland’s typical stock home, the three-bed semi, giving a picture of the property market in towns and cities countrywide.

It now takes 10 weeks to sell the average house in North Dublin, a figure that has remained unchanged since September 2014.

REA agent Dermot Grimes believes the Central Bank’s new deposit rules have definitely had an impact in the market, but added that buyers are also happy to take their time.

“The market has stagnated due to the immediate impact of the new lending restrictions, allied with the emergence of a more cautious buyer who is prepared to wait for the right house,

? said Mr Grimes.