According to recent statistics from the listings website MyHome.ie, asking prices for properties have increased by 7.5% over the past year, reports RTE.
According to the most recent house price survey, that is the biggest pace of growth in the past two years.
This indicates that, nationwide, the median price sought for a residence in the third quarter was €365,000.
Compared to the three months ending at the end of September, that indicates a rise of 0.8%.
Outside of the city, the pace of rise is greater; the median asking price increased to €315,000 over the course of the year, with listed prices climbing 1.2% during the quarter, reports RTE.
The median price in the capital was €455,000 after advertised prices increased 6.2% year over year until the end of September and by 0.3% per quarter.
Supply is still a major factor; in September, there were 13,100 houses listed on MyHome.ie, a significant decrease from pre-pandemic levels, even if not all properties are listed there, reports RTE.
“Quarter-final instructions for sale were up 2% year-over-year, but still very low,” stated Conall MacCoille, Bank of Ireland’s chief economist and report writer.
“The overarching concern is that the tight housing market is now feeding on itself, with would-be vendors put off by for fear of failing to secure a property once they sell their own home,” reports RTE.
Mr. MacCoille did, however, also highlight recent home starts, seeing them as encouraging given that they had increased to 49,000 in the year ending in July.
“However, the rush of activity prior to the expected expiry of waivers on local authority development levies and infrastructure charges means it is hard to gauge when these starts will translate into completions,” he said, reports RTE.
“Still, housing activity has held up far better than expected to the threat to viability from build cost inflation and elevated energy costs,” reports RTE.
MyHome now projects a significant increase in completions to more than 40,000 homes in 2019.
Nonetheless, Mr MacCoille noted Ireland’s population increase of 1.9% for a second straight year is placing the housing market under strong strain.
“A simple way to illustrate this is to ask how many homes Ireland would need to build to match the UK’s housing to population ratio. Our report shows that to ‘catch up’ with the UK’s housing stock would now require an additional 206,000 homes, versus 138,000 in 2020,” he said, reports RTE.
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