Average house prices 123 above lowest point hit in 2013
Mortgage rules tightened since bubble burst in 2008
June prices up 14.1 yy, growth slowing slightly
Dearth of supply a major market factor

DUBLIN, Aug 12 Reuters Irish house prices returned in June to levels not seen since the creditfuelLed peak of 2007,after data on Friday showed further rapid rises that experts have this time attributed to a dearth of supply rather than an overabundance of credit.

Prices have snapped back sharply since they started increasing a decade ago, four years after a bubble collapsed and cut values in half. They are now 123 above a trough reached in 2013 when Ireland was emerging from an international bailout, the Central Statistics Office said.

The central bank, which has since put in place some of the toughest curbs on mortgage lending in the euro zone, said in a Nov 2021 assessment that prices were around the level expected based on economic fundamentals such an income growth.

House prices have risen sharply since then, growing 14.1 yearonyear in June, down from 14.4 in May and cooling slightly for the third successive month. Monthonmonth growth of 1.2 was the highest since late last year.

But the system remains much safer than previously, Goodbody Stockbrokers Chief Economist Dermot O39;Leary said.

The macroprudential rules are a crucial distinguishing feature, he said, pointing to the curbs that limit mortgage lending to 3.5 times a borrower39;s gross income.

Buyers also…