Daft.ie report says house prices have stalled

One of the State's largest property websites reported that house price growth has come to a halt.

One of the State's largest property websites reported that house price growth has come to a halt.

In its third quarter report Daft said that house prices fell slightly over the summer months but recovered somewhat in September.

It said preliminary October figures indicated slight growth but "all signs point to a levelling off in prices".

This is due to two main factors: the increase in interest rates is undermining purchasers borrowing power, and the supply of properties is at an all-time high. Daft says there are more houses advertised for sale in October than ever before.

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Within that national assessment, the Daft report points to significant regional differences.

Properties in south-east Leinster increased by approximately €50,000 in price over the last quarter. At the same time, asking prices for four-bed properties in south county Dublin decreased by the same amount.

Brian Fallon, director, Daft.ie, said: "We are confident that over the next 3 months, as we continue to transition from a sellers market to a buyers market, houses prices will remain relatively static."

Pat McArdle, chief economist, Ulster Bank said the indicators still pointed to a soft landing for the housing market. "A soft landing does not rule out a temporary fall in prices. A hard landing, on the other hand, would be associated with significant and sustained falls in prices."

He said the way to avoid the latter was to ensure that supply be curtailed as demand eases.