A new report from property website MyHome.ie, in collaboration with Bank of Ireland, says the possibility of a trade war will have an impact on how the housing market performs this year, reports RTE.
According to the report, the Irish housing market depends “disproportionately” on high earners employed in multinational companies, making it susceptible to abrupt shocks.
The report showed that property asking prices increased by 8% over the past year, reports RTE.
It noted that the typical mortgage loan for buying a home has now reached nearly €320,000, reflecting a 7% annual rise.
The report also stated that without any disruption from a trade war, the combination of record-low housing supply and persistently strong demand suggests MyHome’s 5% inflation prediction for the year could be “too conservative”, reports RTE.
Bank of Ireland’s chief economist Conall MacCoille, who wrote the report, cautioned that housing affordability is becoming increasingly strained.
“Through 2024 Ireland’s residential property price index rose by 8.7%, stretching affordability versus the 5.6% pay growth recorded over the same period. The average Irish residential property transaction of €404,000 was an eight-times multiple of average annual earnings of €51,000,” he stated, reports RTE.
“This is the most stretched Irish house prices have become relative to income since 2009,” he added, reports RTE.
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