Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
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 Daft.ie 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:
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 Daft.ie publisher Distilled Media Group.
To embed this post, copy the code below on your site
We are very quickly going to price ourselves out of the market, no one can afford to buy a house and that makes it pointless to try to sell one, we call it a crisis, how can a crisis last for over years?
@Valentine Kane: if someone is trying to sell a house they’ll sell it, they mightn’t get the extortionate price that the valuers put on it and might have to accept below asking…… If houses arent selling at asking then prices start to come down.
@Paul Hedderman: Or the state creates false structures to keep the circus rolling. Help to Buy now acknowledged to have inflated house prices – shock, gasp!
@Brendan McCarron: yep, it 100% did. That was only up to 500k though. Plenty of houses higher than that which are still selling. Once asking prices arent being met they’ll sell at lower prices.
@Paul Hedderman: Yup most interventions will push up open market prices as market is distorted. This includes affordable housing schemes.
@Paul Hedderman: there have been houses and apartments advertised at a price, that have ended up going for 100k more lately. Some of this is pent up demand from past 2 years, but remember that someone who gets an extra 50k or even 100k from their sale then has to find another place to live, where its likely exactly the same will be done to them.
@Brendan McCarron: its been a double edged swords – it mostly certainly inflated new builds, but also slightly depressed second hand stock, which is bread and butter for FTBs. If its removed tomorrow, likelihood that new stock would remain the same, while second hand stock would surge as a proportion of buyers would be pushed into competing for second hand stock.
I just sale agreed 305k, but the only available new builds to me cost 345k, so was no use, but likelihood was competition would have increased for 2nd hand stock.
FFG’s legacy.
FFG don’t see this as a crisis. It’s the inevitable outcome of their housing policies. People who keep voting for FFG have voted for this. It’s not an accident.
@Declan Doherty: Actually when the ERSI warned there was an impending housing crisis and the government were going to invest in the construction industry the public went crazy. So the government didn’t invest and we got here. I don’t care what party is in power the public made it very clear the government acted on that.
@Craic_a_tower: Really? You can’t just make things up in all fairness. When did the people of Ireland shout STOP to the government?
@Craic_a_tower: Complete fantasy…Nice try. Clearly a fully subscribed FFG’er
@Craic_a_tower: What! From cuckoo funds to cuckoo land. I’m not sure which one you inhabit, but it’s one of them!
@Craic_a_tower: correct! You’ll see exactly the same under any other govt, even an SF led one.
Anyone earning the average industrial wage should be able to afford to pay a mortgage on a property. Property prices in this country are, at the moment, out of reach of anyone earning the average industrial wage. Something is wrong. The government need to step in and introduce a cap on property prices. The system is going to come crashing down in the very near future.
@Ronan Raftery: what is the current average wage? Not even been smart, just wondering.
@Madra: Depends on who you ask. Leo claims it’s between 47 – 49K. Reality, it’s closer to 30 – 32K.
@Ronan Raftery: the government need to introduce other investment tools in ireland. If anyone has a bit of money (which some always will in a functioning society), they will look at investment options. In ireland the only choice is housing which is by default now an investment opportunity. We are seriously lacking in other financial products which would take some of the pressure off- along with heavy regulation and taxation on culture fund/mass ownership of houses.
@David Corrigan: it depends on your understanding of statistics. Mean is 37k Average is 49k.
@Craic_a_tower: Depends on how positive you want to make it. A politician will just ignore statistics and use the higher number. Comprende?
@David Corrigan: I comprehend the two figures mean two different things. You don’t
@Craic_a_tower: Making up stuff again.
@Madra: If you take “average” to mean the “mean” income its about 40k nationally, “median” income which is where top 50% meet the bottom 50% is about 30k.
House value linked to Property tax.
Scarcity of houses pushes value up.
Increase in value increases CG Tax, if selling.
- That’s a nice bit of tax for revenue.
Also, the government can tax private landlords, but same government cannot tax social housing.
Just saying. Am open to correction.
@Keth Warsaw: Very true, what is annoying however is the fact they fail to tax the new big landlords the same way they tax the individual landlord. Imagine the revenue stream if they increased the tax take on all the build to rent schemes that “litter” the landscape.
@Tony Harris: Capital gains tax does not apply to homes as a “principal private residence” is exempt.
@Keth Warsaw: there is some taxation but its far more limited, correct.
@Tony Harris: they do! They pay 10% stamp duty on bulk buys, VAT and profit taxed just the same. Full CGT on sales also. Landlords are generally taxed high because they have other income that is also taxable. A landlord who charges very modest rent on a single property who also receives a state pension will only pay income tax at a rate of 20% and only on part of the income.
Anyone know what the month on month inflation is like?
In Dublin everything built now is build to rent so naturally supply is diminishing and prices rise.
@Roger Bond: if renting price is not going down, housing price will never drop
Some good news in the report, Galway city quarter on quarter sale prices are -2.1%. Dublin city quarter on quarter prices increases are around 0% with the exception on the north side 1.6%.
@Matthew Donoghue: Limerick city, cork city and waterford city quarter and quarter house price increases have also stalled or just about in negative values.
have your say