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Friday 8 December 2023 Dublin: 10°C
Housing Crisis

Daft report highlights largest quarterly gain in housing prices in nearly two years

The average listed price nationwide is up almost 10% on the same period last year.

HOUSING PRICES ROSE by 3.8% on average during the second quarter of 2022, with the average listed price increasing to €311,874, according to a new report.

The latest Sales Report shows that the March to June period saw the largest three-month gain in nearly two years. The average listed price nationwide is up almost 10% on the same period last year.

The rural-urban gap in housing inflation continues to narrow, although rural areas are still seeing the largest increases. Outside the cities, prices rose by 11.4% in the year to June, down from a peak rate of inflation of 16.8% a year ago. In Dublin, the year-on-year change in prices was 6.6%, compared to just 3.4% at the end of 2021.

The other cities have seen larger increases in prices in the same period, however: in Cork, prices were 9.4% higher than a year previously, while in Limerick city, prices were up 11.1%. The biggest increases in urban housing prices were in Galway (13%) and Waterford cities (13.5%).

The number of homes available to buy on June 1st stood at just over 12,400, up from an all-time low of just 10,000 three months earlier. There are now slightly more homes available to buy in Ireland than a year ago, the first time since mid-2019 that this has been the case.

The report noted average list price changes year-on-year for each of the major cities:

  • Dublin City: €429,384 – up 6.6%
  • Cork City: €330,871 – up 9.4%
  • Galway City: €352,605 – up 13.0%
  • Limerick City: €250,421 – up 11.1%
  • Waterford City: €226,635 – up 13.5%
  • Rest of the country: €261,657 – up 11.4%

Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, said: “Ireland’s housing market has been characterised for a number of years by strong demand, boosted recently by unexpected savings, but supply that has been steadily weakening. There are some signs that both sides of the market may be turning.

“On the supply side, the number of homes listed over the last twelve months has increased by 30% since early 2021, although it still remains 15% below the peak in 2019, while construction of new homes is set to reach a post-Celtic Tiger high this year.

“On the demand side, the rise in interest rates, prompted by inflation, will feed through to housing demand in due course. At the same time, sentiment among those active in the housing market has eased back, with expected inflation in housing prices over the next year below 1%, compared to over 5% three months ago.

“Expected inflation is one of the key drivers of immediate housing demand, so if prospective buyers feel they have more time to choose, they may take that opportunity.”

Note: Journal Media Ltd has shareholders in common with publisher Distilled Media Group.

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