THE AVERAGE ASKING price for properties on sale is 2.2% higher now than it was this time last year, with an even steeper rise outside of Dublin than in the capital.

However, the final value of sales aren’t going as high over the asking price as they were in 2022.

A new property price report released today by MyHome.ie indicates that the housing market is showing some signs of stability despite repeated hikes in interest rates.

The median asking price in the last three months was €325,000, a 2.2% rise compared to the same period last year.

In Dublin, the median asking price was €418,000 (0.6% up on last year), while outside of Dublin it was €280,000 (3.5%).

The rates of change compared to the previous quarter were 4.3% (national), 3.3% (Dublin) and 4.6% (outside of Dublin).

Homes are being sold for around 1.4% higher than asking prices, compared to 5-6% at this time in 2022.

Meanwhile, the average mortgage approval for first-time buyers hit a new record high in May of €298,600, up 3.5% on last year.

But the number of available properties for sale on MyHome.ie was still below the pre-pandemic figure of 20,000, with only 14,000 properties listed.

Conall MacCoille, author of the report and chief economist at Davy, said the data suggests the market is stabilising and possibly gathering some momentum.

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“Asking prices rose by 4% in Q2 2023, a healthy gain ahead of the busy summer trading season and following three consecutive declines,” MacCoille said.

“Housing demand remains resilient. There were €1.27 billion of mortgage approvals in May, a fresh record high. This represents 11.5% volume growth in the numbers of homebuyers with mortgage approval,” he said.

“The average approval for house purchase was €298,600 in May, up 3.5% on the year. Despite the European Central Bank’s (ECB) rate hikes, homebuyers are still taking on more debt, pointing to upward pressure on house prices in H2 2023.”
MyHome.ie Managing Director Joanne Geary said the market is “moving in the right direction” but is “coming from a very low base in terms of supply”.

“The government’s demand-side initiatives and looser Central Bank lending rules appear to be negating the effects of rising interest rates, but we also need to see available properties on MyHome.ie approach the pre-pandemic figure of 20,000 to make a meaningful difference,” Geary said.