Irish home prices rose for the eighth successive month in November, led by increases in Dublin, according to official data released Monday, providing evidence that the country’s six-year housing slump is easing in the capital at least.
The government sees the rising prices as one more sign the country is recovering from the devastating economic crisis that erupted with the bursting of its housing bubble. The government exited its 2010 bailout this month and now relies on bond markets for funding.
Nationwide, residential prices rose 0.6% in November and were 5.6% higher than a year earlier, the Central Statistics Office said. In Dublin, residential prices increased by 1.3% in November and were 13.8% higher than a year ago.
Outside the capital, prices were flat on the month and 0.6% lower than in November 2012.
On average, home prices are 46.5% lower than at their 2007 peak, and prices won’t match those of the boom years any time soon. At best, property price gains will help damaged banks cut some of their huge losses.
The European Union plans to carry out scenario-specific bank audits next year, known as stress tests, to determine whether lenders in countries including Ireland have enough funds.