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A NEW REPORT has found that national housing asking prices are up 7.5% over the year – the highest level of annual inflation in two years.
The latest quarterly house price report by MyHome.ie in conjunction with Bank of Ireland lays out a number of factors putting pressure on the housing market in Ireland.
Of the homes available on MyHome.ie, one in 7 (14%) sold for 20% over the asking price.
Annual asking price inflation in Dublin is now 6.2% and the rate has accelerated to 8.5% in the rest of Ireland.
In the report of the properties available on MyHome.ie, the median asking prices for homes nationally was listed as €365,000. In Dublin, the median price is €455,000, while outside of Dublin, the median price is €365,000.
The report found that pay growth in Ireland had risen by 5.6%, allowing workers to borrow more and thus leading to a record-high level of mortgage approval rates – up 6.2% on the year prior to €318,300.
Rent inflation has moderately improved, sitting at 4%.
Commenting on the report, author Conall MacCoille, Chief Economist at Bank of Ireland, said: “The broad message from the MyHome asking price data is that the CSO’s official measure of house price inflation, based on transactions, looks set to peak in the coming months.
“That said, residential property price inflation was 9.6% in July, ahead of our MyHome figures, because homebuyers are increasingly paying over and above the original asking price. Nonetheless, we still expect RPPI (Residential Property Price Index) inflation to fall back in the coming months, and finish 2024 at 7.75%.”
A shortage of housing has been pointed to as the reason for rising house prices, alongside inflation. The number of properties listed for sale on MyHome.ie in September was just 13,100, still well down from pre-pandemic levels.
MacCoille said that the rising population has been an important factor in pressure put on the Irish housing market, saying: “Perhaps the most striking news since our last MyHome report is that Ireland’s population grew by 1.9% pace for a second successive year, to 5.38 million in 2024.
“We have not seen population and economic growth at this level since the Celtic tiger era, and as a result the housing market is being put under intense pressure.”
According to this report, Ireland would need to deliver an additional 206,000 homes this year alone to match the UK’s housing to population ratio. This is a rapid increase: in 2020, Ireland would have needed 138,000 extra homes – 68,000 fewer than this year – to match the UK’s market in relative terms.
This is despite housing starts having risen to 49,000 in the 12 months to July, with completions expected to rise sharply to above 40,000 units in 2025.
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Government is the problem
@Oh Mammy: We don’t live in a dictatorship. Half the country want this government. We need to acknowledge that
@common sense: neither FF or FG were the most voted for party, but we got both.
@Eoin .h: your talking about an election 4 years ago. 49% of people support this government according to the latest poll.
@common sense: polls mean nothing. You’re the one sounding like the dictator now.
@Eoin .h: Elections mean something though. The current government got the most TDs elected. Pretty straightforward
@Oh Mammy: Because they allow free rein to vampire funds and others that have brought great harm to us.
@ItWasLikeThatWhenIGotHere: Quite the opposite. The thousands of homes funded by funds would, could not have been built without the money supplied io buy bricks. Left would prefer fields of weeds than houses and factories as they need more poverty to fit their narrative.
@Jason Memail: No they lied to the electorate before the election saying they would not go into coalition together. They would have got a lot of votes based on this statement. Also were the polls all wrong in the run up to the election. FFG would do anything to keep SF out .Remember these 2 parties were the worst of enemies for the last 100 years.
Unfortunately it’s just going to get worse demand is increasing every week plus as more people arrive into the country it increases again. Terrible to say that for generations to come unless they’re earning a fortune they may look abroad they have been betrayed by excessive greed and incompetence.
According to my mate he is property agent there are a lot of Indian buyers. He works in Kildare area he says almost every second house he sold to the Indian family.
@Artur Filip: you are going to get called a racist now for pointing out a fact. They are everywhere. No wonder native people can’t get accommodation
@Artur Filip: Who’s stopping you from getting a high paying job in Tech or medicine like them and buying all property too. Don’t be jealous and moany and do something about your career. Indians are the richest immigrant group in the US and UK as well
@Freda Peeple: That’s not a fact, that’s hearsay.
@Freda Peeple: you’re stretching the definition of fact to breaking point. And then you follow up with “they are everywhere” – nice dog whistle there
@Kush OMeara: My wife is a nurse who works with a lot of Indians.
She says even Indians saying there are too many Indians.
That’s the fact the same story is with the rental market just go to one of those new estates with block apartments.
@Ciaran O Donoghue: 100k Indian born living in Ireland. Hardly insignificant in a small country like Ireland.
@Freda Peeple:
2% of the population, yeah they are the biggest problem alright.
Where do you people think we are going to get the builders necessary to actually solve the housing crisis?
All our builders left in 2007 after getting shafted in the crash.
@Freda Peeple: so less than 2% of the population of Ireland. Not insignificant perhaps, but hardly overwhelming either
@Freda Peeple: I didn’t mention anything about numbers of Indian people. Hearsay is not fact. My mate told me that 10% of bears are actually horses.
@Ciaran O Donoghue: Good god, I had no idea about the bear and horse connection.
@lesidees: Yea that’s 2% just from one country, not significant? Also there’s 2 million Indians in Canada and I know Canadians are getting fed up. Same insane property crisis. No correlation of course between property demand and immigration though.
@P. J.: Did I say they were the biggest problem you sausage? Numbers should be controlled, like the way Australia and New Zealand do it. I am a builder and currently on 3 different sites, and like every other site I’ve been on there are no Indian trades people. So you might be a while waiting on your house to be built yet.
@P. J.: Not from India pal, I’ve been on hundreds of building sites and not one Indian lad, the love the hi tech, computers and that shite
Perfect! can’t wait to go to work today with no future. Battery hen for the economy.
A house you couldn’t swing a cat in made €130k in Blackpool recently. That would be worth 70-80 tops a couple of years ago. Sold on an auction site. They’re looking for €1800 rent a month rent. Who could afford that..
@Jamie Hinch: lat uear house on Shandon St. Asking price was €145,000…sold forb€260,000…
@damien leen: Fairly obvious investors are buying up, especially around Blackpool. The guy who bought this is from up the country. Only set foot in it when he got keys..
The $hitshow continues
Some houses are been low balled to suck people into fake bidding process.
Unfortunately it going to get worse.
U have the German and French economies in trouble so the ECB will have to reduce interest rates which increases mortgage affordability and in turn demand / house prices.
If u take our closest Neighbour, their budget will be about increasing taxes etc. this in turn will have an impact on ppl moving to ireland where there is plenty of jobs and taxes are being reduced.
Nett immigration into ireland is 90k a year. With this amount of ppl coming into the country, needed a home and plenty of high paying work, houses prices have to increase.
Ireland can only build 40-50k houses a year over the next 5 years. We build 90k a year back in the 90’s but that was from workers from Eastern Europe.
Also housing charity’s / local gov buying 8k houses a yr
@John Purcell: 90k per year was because FF knew what they were doing and were not being hindered by far left or right.
@thomas molloy: Which has fecked up the quality of life for far too many of us
@John Purcell:
You are being extremely optimistic with your suggestion that we are going to build 40 to 50k houses over the next few years
35K tops
@P. J.: again we will only know in a few years but house commencements are at 49k for this year I think so it’s diff improving and there is clear political will from current gov and opposition.
Again it’s just a case of supply and massive demand across health, education and housing. Impossible to deal with.
It could be one of those issues thats unsolvable. It’s not money it’s just we don’t have the people to build them and ppl don’t like houses where they live.
@John Purcell: Growing pains of a good developing country.
@thomas molloy: 100% but u could argue its growing too quickly hence all the issues we are having.
Tye main problem, that state ploughing into the banks which ebcourages prices to go higher, absurd abd yet it is being, it is like paying twice for a house abd it is tax payer money being pumped into the banks. It’s like a bailout that the banks don’t even need while banos are still not paying corporation tax, if only the government were as good to the people as they are to the banks.
Great to see house prices rising long may it continue.
It’s what you voted for.
No point whinging now
Amazing people believe politicians will fix problems going on in this country for years.
House i was renting. Freezing cold no good insulation just sold for 280 000 she bought back in day for 40 000 . Nice profit not including rent made and i did the maintenance as she was too mean or took life time cough up cent. Know are some good landlords but are lot greedy ones now selling up as know can make a killing for poorly ip keep houses. Half landlords with multiple properties in my town are ff and fg tds . Looking aftervown pockets
@martin finnegan: That’s like saying over half the landlords are white. Most speeding tickets are for white people. ?
Lets vote government in again making some people rich. This is one reasons should not vote ff or fg in . I know means voting sf. I like see how they do . Present government get in again feel lot our kids will leave Ireland especially ones that aren’t going to inherit houses or lad . They need to be though lesson voting them out for sf would hurt them so much . Love see their faces
As the fear of SF led leftists getting into power recedes landlords should hold back selling up and builders should build with confidence.
@thomas molloy:
It wouldn’t have made the slightest difference whatsoever if SF had/do get in.
If we don’t have the builders we won’t have the buildings, regardless of which parties are in power.
asking prices. thats a good barometer. I bought a Ford modeo for 30k yesterday, selling today for 60k. doesn’t mean prices of Ford modeos have gone up 100%.
@Niall English: ford mondeo mobile home car, sleeps 4 comfortably, heating, air conditioning, alarm, tinted windows for privacy, entertainment console working perfectly with surround sound speakers. driveable to local schools and shops. Plenty of boot space for chemical toilet and storage. A bargain piece of square footage in in any desirable location of your choice. 60k should secure your purchase but I have plenty of interested buyer’s so be prepared to pay more!
Greed is good
@Lewis Armstrong: Greed works.
@Pat Barry: For gangsters
Average house price is 450k in Dublin … no wonder the place is overflowing with problems… years and years of government incompetence, or unwillingness to do anything about it . Free market capitalism ? … this is what you end up with . No doubt there’ll be plenty of career landlords with tails wagging… Enjoy , just don’t allow the money to get stuck in your throat .
I better, but the rent’s up again so.
have your say