THE AVERAGE ASKING price of a newly listed property in Dublin is recorded as €383,000, according to property website MyHome.ie and Davy’s latest house price report. 

The average asking price for houses nationally is now €280,000.

Asking price inflation rose by 1.2% nationally compared with quarter two of 2019, despite the impact of Covid-19. 

The rise in asking price inflation since quarter two of 2020 has been even more pronounced, up by 4.3% nationally, 2.9% in Dublin and 4.7% elsewhere around the country.

This means the mix-adjusted asking price for new sales nationally is €280,000, while the price in Dublin is €383,000 and elsewhere around the country is €234,000. 

Newly listed properties are seen as the most reliable indicator of future price movements, according to MyHome.ie. 

MyHome.ie MyHome.ie

“Looking ahead, we think prices will be broadly flat in 2020, or see marginal declines, but the impact of Covid-19 on the housing market could have a longer, slow burn impact than many appreciate,” Conall MacCoille, chief economist at Davy, said. 

The increase in asking prices is likely a combination of people who already have mortgage approval moving to secure properties, and a shortage of stock, Angela Keegan, managing director of MyHome.ie suggested. 

“One of the many negative effects of Covid-19 has been the decrease in construction output, which has had significant ramifications for the property market,” Keegan said. 

“Anecdotally we are also seeing people who have mortgage approval acting fast to secure properties and this, added to the fact that stock levels are low, is driving asking prices upwards,” she said.  

Mortgages

Elsewhere, the Banking & Payments Federation Ireland (BPFI) today published new figures which show that a total of 3,397 mortgages were approved in July 2020. 

First-time buyers were approved for 1,883 mortgages (55% of the total volume). 

The numbers of mortgages approved (2,713) rose by 50.1% month-on-month and fell by 33.8% compared with the same period last year. 

Mortgages approved in July 2020 were €811 million, of which first-time buyers account for €462 million (57%). 

The value of mortgage approvals rose by 51.2% month-on-month but fell by 30.2% year-on-year.

“With the reopening of the economy we have seen a significant increase in mortgage approval numbers in July compared to the previous month. However, on a year-on-year basis, approval numbers are still down which is not unexpected,” BPFI chief economist Dr Ali Ugur said.