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House prices across Ireland are 9% higher than one year ago

Inflation is highest outisde of cities, with prices rising by 13%.

HOUSE PRICES IN Ireland have risen by 9% in the past 12 months as the supply of homes remains severely restricted.

Two separate reports by property websites Daft.ie and Myhome.ie found a major increase in prices over the past year, while noting that the availability of properties for sale has dropped significantly.

The Daft quarter 3 house price report found that the average price nationwide in the third quarter of 2021 was €287,704, a total of €24,000 higher than last year.

This figure is 22% below the Celtic Tiger peak but three quarters above its lowest point in 2012. 

This national trend hides notable regional differences. Prices in cities are inflating at a much lower rate than rural areas.

Dublin saw a 4.9% increase in the year to September, its slowest rate of inflation in a year. In Galway city the rise was 3.1% year-on-year, in Cork city it was 5.8% while in Limerick city it was 8.4%.

Outside the main cities the rate of inflation was significantly higher, jumping by nearly 13% year-on-year. In Mayo and Leitrim Daft found that prices are more than 20% higher than a year ago.

The total number of properties available to buy on 1 September was just below 12,700. Daft says this is one of the lowest figures recorded since the rise of advertising properties online, despite increasing slightly from levels recorded earlier in the year.

The figure is one third lower than the same date a year earlier and a little over half the amount for sale in September 2019. 

The report’s author Ronan Lyons, economist at Trinity College Dublin, said the latest market signals suggest that “thankfully, the worst of the Covid-19 squeeze has passed.”

“Inflation has eased a bit and there has been a modest improvement in the number of homes available to buy at any one point. Nonetheless, while the Covid-induced spike in market conditions may be passing, the underlying issues remain,” Lyons said.

The stock for sale remains well below pre-Covid-19 levels, while many parts of the country are still seeing prices that are at least 10% higher than a year ago.

Lyons added that the Government’s ‘Housing for All’ plan contains a welcome boost in social housing activity but construction costs “do not appear to be on policymakers’ radars.”

The Myhome quarter three report also found that annual asking price inflation rose by 9% nationwide as buyers “aggressively” pursued available properties.

The measure was up by 7.3% in Dublin and by 10.1% elsewhere around the country.

The report notes that the 9% annual inflation rise is, however, down from a figure of 13% recorded in quarter two.

The author of the MyHome report, Conall MacCoille, Chief Economist at Davy, said that the findings of the report provide little respite for homebuyers.

“The market is still starved of supply, with prices being bid-up aggressively by homebuyers. This behaviour is evident in transactions being settled well above asking prices,” MacCoille said.

“Unfortunately, there has been only a marginal improvement in housing market conditions for homebuyers.

“There are currently 13,500 properties listed for sale on MyHome.ie, up only slightly from 12,700 in quarter two 2021 and still well down on circa 20,000 pre-pandemic.

“Although new listings have recovered through 2021, the underlying picture is that vendors have only gradually returned to the market whereas demand has remained robust,” MacCoille added.

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

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    Mute Declan Doherty
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    Sep 27th 2021, 7:08 AM

    FG housing policy working as designed. They’ll be delighted with 9% price hikes. If you vote FG you probably don’t want anyone else to own their home either and indeed, at this point you’ll likely be the reason they won’t. For those who don’t vote FG thank you. Our only hope out of this mess is that others also wake up and stop voting FG. There are so many issues that need to be addressed but we can’t even begin to address them until we have a government that views a report of this nature as a problem rather then a victory.

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    Mute John Bathe
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    Sep 27th 2021, 7:15 AM

    @Declan Doherty: got it in one..many FF and FG TDs are landlords, or their near family… high house prices are essential for high rental so all going to policy… its the one policy they haven’t failed to adhere to funnily enough… nothing like self interest to keep your mind focused…

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    Mute Roy Dowling
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    Sep 27th 2021, 7:36 AM

    @John Bathe: A quick search also shows, some SF TDs are landlords, also other TDs outside of those 3 parties are landlords. How come you failed to mention that?

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    Mute Fiachra Murphy
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    Sep 27th 2021, 7:45 AM

    @Roy Dowling: because they’re not putting out policies that benefit landlords to the detriment of the general public. Is that not obvious?

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    Mute Fr. Fintan Stack
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    Sep 27th 2021, 7:46 AM

    @Roy Dowling: I’d imagine it’s because it’s FFG policies that are being implemented, not oppositions. A quick search will also tell you FG have by far the biggest % of their TDs are landlords.

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    Mute Roy Dowling
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    Sep 27th 2021, 7:49 AM

    @Fiachra Murphy: They benefits from all those policies. Many on here feel that anyone who owns a second home shouldn’t rent it they should sell it so it increases supply and drops house prices.

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    Mute Roy Dowling
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    Sep 27th 2021, 7:52 AM

    @Fr. Fintan Stack: Quick search also tells you Michael Healy Rae is the biggest landlord in the dail. But never gets a mentioned as part of the problem.

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    Mute Fr. Fintan Stack
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    Sep 27th 2021, 7:58 AM

    @Roy Dowling: so again, is he setting policy?

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    Mute Roy Dowling
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    Sep 27th 2021, 8:00 AM

    @Fr. Fintan Stack: Where did I say he was. I said he benefits from the policies. Who’s likely to vote these policies through the dail? Those who benefit from them or those that don’t?

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    Mute Mogh Roith
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    Sep 27th 2021, 8:12 AM

    @Roy Dowling: yes, and the people who benefit most are FFG. These are the people setting the policy. Why is this difficult Roy?

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    Mute Roy Dowling
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    Sep 27th 2021, 8:20 AM

    @Mogh Roith: All policies have passed by the dail. Which means TDs have to vote them through. Including the SF TDs and independent TDs etc. How sure are you they are voting against policies that they have a vested interest in?. Or simply don’t turn up to a vote so one less vote against the policy. Why is it difficult for you to see any TD who is a landlord is a problem?

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    Mute Mogh Roith
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    Sep 27th 2021, 8:24 AM

    @Roy Dowling: Only way to determine that is to vote SF next time and see if they bring in policy designed to help banks and investors or policies to help get regular people onto the housing ladder.

    49
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    Mute Declan Doherty
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    Sep 27th 2021, 8:26 AM

    @Roy Dowling: Being a landlord isn’t necessarily a problem. Being a landlord while voting for policies that seek to raise house prices to unaffordable levels while locking first time buyers out of the market is definitely a problem.

    52
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    Mute Roy Dowling
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    Sep 27th 2021, 8:31 AM

    @Mogh Roith: erm no. I’ll never vote for FG, FF or SF. There part of the problem not the solution

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    Mute Roy Dowling
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    Sep 27th 2021, 8:32 AM

    @Declan Doherty: All TDs vote on those policies that’s why I brought up that there are landlords form other parties not just FG or FF.

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    Mute Declan Doherty
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    Sep 27th 2021, 8:41 AM

    @Roy Dowling: Yes they all vote on these policies but they don’t all vote for these policies. That’s the difference.

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    Mute Fr. Fintan Stack
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    Sep 27th 2021, 8:43 AM

    @Roy Dowling: Ah come on now Roy, a closet FFG voter. Still clutching at straws. Oh look over there at SF, PBP, Danny Healy Rae, or whoever you care to mention. Irrespective of how the opposition vote FFG/Greens set the policy…… This so called defense of the government is getting boring now.

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    Mute Roy Dowling
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    Sep 27th 2021, 8:50 AM

    @Declan Doherty: How do you know. Also not showing up to vote against it is a vote for it

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    Mute Roy Dowling
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    Sep 27th 2021, 8:52 AM

    @Fr. Fintan Stack: And opposition voting for it the policy or not showing up to vote against it. All fine by you. Good to know. Also not possible to Vote for FFG as they don’t exist.

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    Mute David Corrigan
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    Sep 27th 2021, 8:55 AM

    @Roy Dowling: Same as SF/IRA I guess. No such thing.

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    Mute Roy Dowling
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    Sep 27th 2021, 9:02 AM

    @David Corrigan: Where have i said there was?.

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    Mute David Corrigan
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    Sep 27th 2021, 9:20 AM

    @Roy Dowling: You didn’t. I was agreeing with your comment that FFG don’t exist and added another example to your list.

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    Mute GrumpyAulFella
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    Sep 27th 2021, 9:42 AM

    @Fr. Fintan Stack: sure Fr tell us what SF’s housing policy is, besides not allowing social housing in their housing spokesperson’s constituency? What is their policy on housing that is going to be the silver bullet here? Let’s hope it’s not the same policy that is driving the housing crisis in NI under the SF housing minister there, in that country. I’m sure Gerry would be interested in the landlord debate, sure he has homes in Belfast, Donegal, Louth and Clontarf.

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    Mute Roy Dowling
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    Sep 27th 2021, 11:50 AM

    @David Corrigan: okie dokie.

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    Mute John Mathews
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    Sep 27th 2021, 9:13 AM

    And it will continue to happen as long as we allow companies who only pay 12.5% tax on their Profit to buy homes they can never live in and compete with people who pay 52% tax on their income and need to live in these houses.

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    Mute Craic_a_tower
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    Sep 27th 2021, 2:23 PM

    @John Mathews: how much do you have to earn to pay 52% tax on your ENTIRE salary? Nobody in that situation is poor and forced to rent. People really don’t understand tax when they claim they are paying 52% on income. If you want to make that claim then you want landlords to pay less tax as most pay that on rental income

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    Mute John Mathews
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    Sep 27th 2021, 3:41 PM

    @Craic_a_tower: I never said landlords, I said companies. Landlords will pay the marginal rate of tax on their rental income. I have no bone to pick with landlords as you rightly point out they pay tax on the rental income. But companies don’t pay tax on the rental income. They only pay a much smaller tax 12.5% on the profit after subtracting all their running costs. Companies can’t live in these homes that they buy by the hundreds and thousands. They have far deeper pockets than people do and their presence in the residential property sector pushes house prices above the true affordability level of the actual population. I have actually written a whitepaper and petition on this point but I can’t link on the journal because I’m new. If someone would care to link it I’d appreciate it.

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    Mute John Mathews
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    Sep 27th 2021, 3:44 PM

    @Craic_a_tower: In 2016 the census had nearly 2/3rds of Irish households earning 60k or less. If you take that figure and multiple it by 3.5 times the current bank mortgage you get a figure of 210k. So that means that 2/3rds of the countries households can afford to borrow 210k or less when the average asking price of a house in the country is 303k and 412k in Dublin according to the Q2 2021 myhome report. It’s companies competing with people that has driven prices up past what people can afford and they should be banned from purchasing residential property.

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    Mute Craic_a_tower
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    Sep 27th 2021, 4:30 PM

    @John Mathews: what has any of that got to do with you claiming people pay 52% tax? Unless you earn a hell of a lot of money you don’t pay that much tax. You confused the higher tax bracket on a PORTION of your salary as the rate people pay on their ENTIRE salary. You made an incorrect statement. I think you have to get paid over 1.6 million a year to get taxed 52% on your entire income. Not worried about such people paying rent.

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    Mute John Mathews
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    Sep 27th 2021, 5:00 PM

    @Craic_a_tower: I think we both know that’s not even close to the point I was making. You are correct that I was instead referring to the higher rate of tax people pay when they tick over the 35k 20% band. Can’t believe that’s what you chose to take from my comment. We have a massive housing affordability crisis and you seem to be more interested in picking up on a tiny nuance than actually trying to be realistic about what is causing the issue and actually helping people. Dude if you are angry and want to vent hit the gym instead of trying to take shots at someone trying to fix a really serious issue.

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    Mute Craic_a_tower
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    Sep 27th 2021, 9:01 PM

    @John Mathews: it was untrue and then you started ranting. You can make a point and also use the truth.

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    Mute Dave Barrett
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    Sep 27th 2021, 8:00 AM

    Signs of the bubble bursting again?.

    73
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    Mute iohanx
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    Sep 27th 2021, 8:04 AM

    Great to see people moving out of Dublin. There is a lot to be had living in or around other towns in Ireland.

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    Mute Roy Dowling
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    Sep 27th 2021, 8:14 AM

    @iohanx: Were soon to be moving to our new home in Wicklow and as. Excited we are about moving into our on home the thing that worries us is the commute. The m50 and N11 are a joke and what should only take 15 mins to drive will take about 45 to and hour to drive when we finish work.

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    Mute White Chapel
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    Sep 27th 2021, 12:25 PM

    @iohanx:
    Yea, and those people are having to pay a lot more for it too with increases of 20% in non-commuter counties like Leitrim and Mayo mentioned above..
    Those sorts of price increases are crazy

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    Mute aperally
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    Sep 27th 2021, 1:13 PM

    @iohanx: agree 9% of the population living in the capital is way too much

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    Mute Munster1
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    Sep 27th 2021, 8:29 AM

    Government parties should be proud of themselves. Ruining lives so people can make profit. Traitors is a great word.

    93
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    Mute Elvis
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    Sep 27th 2021, 8:26 AM

    Still unaffordable for most people

    50
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    Mute Mike Ruddy
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    Sep 27th 2021, 9:32 AM

    No sitting TD should be a landlord in a housing crisis. In lay mans terms, it should be called a conflict of interest. Anyone that votes for a landlord – you are the problem here! A little bit of research before a general election will tell you who is a landlord and who isn’t! The Irish voters are responsible for this mess and the Irish voters can rectify this problem too but the first thing they need to do is accept responsibility. Start voting for your children’s future!

    57
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    Mute Stan Papusa
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    Sep 27th 2021, 10:14 AM

    @Mike Ruddy: It shouldn’t be called a conflict of interest. It IS a conflict of interest! Except when, you know, you’re the one defining the rules…
    The problem is that democracy and plutocracy are nowadays interchangeable terms.

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    Mute Mirabelle Stonegate
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    Sep 27th 2021, 11:56 AM

    @Mike Ruddy: I’m an Irish voter. But I have zero responsibility for the mess, and you can’t say otherwise.

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    Mute Declan Doherty
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    Sep 27th 2021, 1:41 PM

    @Mirabelle Stonegate: If you vote FF or FG then you do share responsibility for this mess. Its not like we don’t know what these parties stand for. If you vote for them you are voting for their policies.

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    Mute Mirabelle Stonegate
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    Sep 27th 2021, 2:12 PM

    @Declan Doherty: whilst I occasionally will drop a vote towards someone in either of the parties, it tends to be down around 6th or 7th preference, to someone who has no hope if actually getting in. My top 5 votes NEVER go to ff or fg.

    Yes, I know how the transfer system works, but again.. I never vote for the names that are likely to get in, when it comes to those 2 parties.

    So no, I have zero responsibility for the mess.

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    Mute Stan Papusa
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    Sep 27th 2021, 9:45 AM

    Blah blah blah, followed by more whining and blah blah.
    How many times in the last 20 years did people took to the streets in significant numbers, and for what causes? The Irish definitely got their priorities right…
    Leave it to the fox to manage the hen house and oops, big surprise!

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    Mute Great White Hope
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    Sep 27th 2021, 8:42 AM

    Varieties from place to place. In Cork prices have gone up way more the 9%

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    Mute Eddie O'Neill
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    Sep 27th 2021, 12:26 PM

    So too expensive in Dublin and too expensive outside Dublin, what an absolute kip

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    Mute Hugo Bugo
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    Sep 27th 2021, 9:20 AM

    Finally a good news story on a Monday morning

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    Mute Florin Strango
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    Sep 27th 2021, 10:02 AM

    Here come the bubble….rotten house in my area …across matter hospital for 295 000….54 m 2…..what can I say? If we gonna stay in Ireland probably will buy a plot and build a proper house in the country side…with ceramic blocks ….why on earth they are using concrete blocks in Ireland and…wood ceilings…and foam …no foundation….my bungalow back at home 1 m deep foundation and another 80 on surface and the we start building …basaltic wool….etc etc…

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    Mute Snacktoshi Nachomoto ∞/21M
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    Sep 27th 2021, 8:07 AM

    Bitcoin fixes this

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    Mute john smith iv
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    Sep 27th 2021, 8:21 AM

    @Snacktoshi Nachomoto ∞/21M: Bitcoin is good at reducing house prices? Good stuff.

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    Mute john smith iv
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    Sep 27th 2021, 8:22 AM

    @Snacktoshi Nachomoto ∞/21M: Bitcoin fixes piles.

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    Mute Snacktoshi Nachomoto ∞/21M
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    Sep 27th 2021, 12:46 PM

    @john smith iv: Rising house prices are a symptom increased money printing by central planners. Bitcoin is hard money that can’t be inflated. HFSP

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    Mute Snacktoshi Nachomoto ∞/21M
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    Sep 27th 2021, 12:47 PM

    @john smith iv: There is little evidence that bitcoin fixes piles. Do you have a source

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    Mute aperally
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    Sep 27th 2021, 1:18 PM

    @Snacktoshi Nachomoto ∞/21M: “Bitcoin is hard money that can’t be inflated.” are you taking the pi** ? Bitcoin has fluctuated from 20k $ to 58k$ and back in less than a year

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    Mute Snacktoshi Nachomoto ∞/21M
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    Sep 27th 2021, 2:22 PM

    @aperally: What you’re talking about is price discovery. I’m talking about is supply inflation. i.e the number of bitcoin in circulation which is controlled at the protocol level and can’t be manipulated by anyone. Get educated or HFSP

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    Mute Pete ThirtyTwo
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    Sep 27th 2021, 3:25 PM

    And that is the closest reliable figure of the last years inflation that you will see.

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    Mute Judy Harmey
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    Sep 30th 2021, 9:31 AM

    Many people ppay 52% of their income in tax. Rent on a grotty 2 bed house (if you can find one) is 2,500-5,000/month depending on area. Wake up – Dublin rentals not affordable by anyone which is why you see bunkbeds stuffed into everyvroom ofvthevhouse.

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