HOUSING PRICES HAVE risen by almost 8% compared to last year, despite a small drop in the last three months according to the latest property price report from MyHome.ie

The report, published this morning, says that while the inflation of prices has increased by 7.8% in the last 12 months, the increase has slowed in the last quarter.

According to MyHome.ie, the median asking price for a home in the third quarter was €320,000, which is a reduction of 1.3% compared to the second quarter of 2022.

In Dublin, the median asking price was €420,000 in the third quarter, which is a fall of 1.1% compared to the second quarter. It is a 6.2% increase compared to Q3 2021 however.

Report author Conall MacCoille, the chief economist at Davy, said that while there has been a slight reduction over the summer, this does not mean house prices would begin to fall consistently.

“Asking prices are typically weak as the busy summer trading season peters out and fell in both Q3 2018 and Q3 2019. After the disruption of the Covid-19 pandemic, the usual seasonal pattern has re-emerged,” said MacCoille.

MacCoille said that he expected Irish house prices to continue to grow but said that it would likely be at a slower rate.

“Looking forward, we expect that Irish house asking prices will grow by 6% through 2022 and by 3% in 2023.

“There are of course many risks to this view. Ireland potentially faces an energy crisis this winter amid fears of a full-blown European recession brought on by events in Ukraine and surging natural gas prices.”

According to the report, mortgage approvals equalled €14.7 billion in the 12 months to last July, which is significantly higher than mortgage drawdowns, which was worth €11.7 billion.

Revenue also shows that there were 30,000 applications for the Help-To-Buy scheme from July 2021 to July 2021, but that there were only 7,400 claims made.

House completions

According to the report, in Q2 2022 there were 7,654 house completions, with 24,929 homes being built in the last 12 months.
MyHome.ie is currently expecting the number of houses completed in 2022 to exceed 26,500.

Despite this increase, the report says that it doesn’t expect the number of houses built to exceed 30,000 in 2023 due to a “marked slowdown in housing commencements”.

The report says that in the three months to July, there were 7,244 houses commenced, leaving an annual total of 28,450.

“This suggests that supply-chain issues and input price inflation are now beginning to weigh on development,” reads the report.