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House Prices

House prices largely stable in third quarter but year-on-year inflation remains high

There was a 0.1% increase in the second quarter of the year but year-on-year inflation remains high at 7.7%.

HOUSING PRICES WERE largely stable between June and September, according to the latest sales report by

The average listed price nationwide in the third quarter of this year was €311,514.

That’s an increase of 0.1% on the average for the second quarter of the year and 16% below the Celtic Tiger peak.

Leitrim recorded the lowest average price, at just over €175,000, while prices were highest in South County Dublin at more than €654,000.

However, year-on-year inflation remains high at 7.7%, although this is down from 9.2% three months ago.

Third quarter figures

Compared to the previous quarter, house prices were stable in Dublin but rose slightly in the other cities.

Cork city prices rose by 0.2%, Limerick prices grew by 0.3%, Galway prices increased by 0.5%, and Waterford prices by 0.6%.

Outside the cities, prices rose in Leinster by 1.1%, while there was a fall of 0.7% in Munster and a 0.5% decrease in Connacht-Ulster.

Despite the quarterly falls in many locations, year-on-year inflation remains positive in every city and county – ranging from 5.4% in Meath to 16.8% in Donegal.

The number of homes available to buy on 1 September stood at nearly 15,500.

That’s an increase of 22% on the same date last year and the highest total nationally in almost two years.

In Dublin, there were just over 4,000 homes for sale on 1 September, up 30% on the 3,100 homes available a year previous.

Meanwhile, there was a 40% yearly increase in the rest of Leinster, where there were just over 3,900 properties on the market.

There was only an 8% increase in Munster, were just over 4,100 homes are on the marker, and a 15% increase in Connacht-Ulster to 3,300 properties.

Each quarter, also surveys over 1,000 property market participants about their sense of the market.  

Just over half of those looking to buy, but not straight away, cite the need to save for a deposit as a key factor in delaying home purchase.

This is a bigger issue in Dublin than outside of Dublin, at 63% compared to 52%.

A lack of homes also remains an issue for respondents.

Almost 70% cited the lack of homes as a factor in delaying home purchase, though this is down from 80% two years ago.

The report says a lack of supply has been a relatively constant feature in the market over the past five years.

‘True solution’

Commenting on the report, author Ronan Lyons, economist at Trinity College Dublin, said: “Improved stock on the market over the course of 2022 has helped reduce inflationary pressures in the sales market.

“This is most notably the case in Dublin, where the total number of listings coming on to the market in the year to August was effectively in line with the pre-covid number.

“This has helped improve the stock on the market at any one point in time, the key predictor of future price changes.”

While the number of listings and availability has also improved elsewhere, Lyons said “they remain in some markets well below the ten-year average”.

He said: “While weaker demand – due to inflation in other living expenses and to increases in interest rates – may help stabilise prices, the true solution to the high level of housing prices remains significantly increased supply, over years and indeed decades to come.”

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

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