Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

RollingNews.ie

House prices rise 6% in 'fastest inflation' in three years

A report says Government supports and a drop in supply are partly responsible.

NATIONAL HOUSE PRICE inflation has surged to more than 6%, the fastest pace in almost three years, according to the latest house price report from a property website.

The report, from MyHome.ie, found that annual asking price inflation rose by 6.3% nationwide, by 4.8% in Dublin and by 7.2% elsewhere around the country.

Authors of the report said this was due to a number of factors, including Government supports protecting incomes and removing the risk of forced selling.

It was also due to prospective home-buyers largely being protected from job losses, mortgage lending hitting a new cycle high of €1.1 billion in October, and housing supply issues becoming more acute.

The authors said the data confounds warnings sounded earlier in 2020 that the housing market could see “double-digit” price declines.

Meanwhile, after significant increases in the third quarter, quarterly asking price inflation has tapered off – rising by 0.6% nationally, by 1.6% in Dublin, and by 0.6% elsewhere around the country.

The mix-adjusted asking price for new sales nationally is €284,000, while the price in Dublin is €392,000 and elsewhere around the country it is €238,000.

Newly listed properties are seen as the most reliable indicator of future price movements.

The author of the report, Conall MacCoille, chief economist at stockbroker Davy, said that house price increases were now likely in 2021.

“This quarter’s MyHome report points to an acceleration in annual asking price inflation to 6%, the fastest pace in almost three years,” he said.

“This pressure has not yet turned up in transaction prices, although the Central Statistics Office (CSO) Residential Property Price Index (RPPI) rose by 0.5% in October, the sharpest monthly increase in over one year.

“It is probably only a matter of time before the official measure of house price inflation accelerates.

“As we head into 2021, homebuyers have saved additional funds to purchase homes, with sentiment helped by the likely recovery in the economy as vaccines are dispersed.

“Given that homebuilding will remain impaired, with banks seeking lending opportunities, too much cash is chasing too few homes – which can only push prices higher.”

Angela Keegan, managing director of MyHome.ie, said: “The property market mirrors the overall economy, and we are in a much better place now than we may have expected to be early in 2020 when the virus emerged.

“Government Covid-19 supports, increased mortgage lending, and the concentration of job losses among mostly lower-paid workers have ensured the property market has remained buoyant, while the ongoing issue of supply has exacerbated demand leading to a rise in house price inflation.”

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

View 60 comments
Close
60 Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Install the app to use these features.
    Mute Phil O' Meara
    Favourite Phil O' Meara
    Report
    Jun 18th 2015, 8:27 PM

    What? Again! This Oldest Person in the World title is nothing but a poisoned chalice…..

    575
    Install the app to use these features.
    Mute Rashers Tierney
    Favourite Rashers Tierney
    Report
    Jun 18th 2015, 8:42 PM

    Phil, that really was a cracker – kudos :-D

    113
    Install the app to use these features.
    Mute Egg Head
    Favourite Egg Head
    Report
    Jun 18th 2015, 8:32 PM

    Kathleen looks phenomenal for 113! She looks better than I do manys a Sunday morning!

    239
    Install the app to use these features.
    Mute jason bourne
    Favourite jason bourne
    Report
    Jun 19th 2015, 12:28 AM

    And you’re only 109!

    34
    Install the app to use these features.
    Mute Glenard
    Favourite Glenard
    Report
    Jun 18th 2015, 8:29 PM

    Spanning 3 centuries.
    RIP

    151
    Install the app to use these features.
    Mute Ted Logan
    Favourite Ted Logan
    Report
    Jun 18th 2015, 9:39 PM

    Can’t be many left to do so. RIP

    50
    Install the app to use these features.
    Mute Eamon Mac Gowan
    Favourite Eamon Mac Gowan
    Report
    Jun 18th 2015, 10:06 PM

    Just two people left who were born in the 1800′s, I am not a sentimental person but I think it’s a wonderful thing that they are still with us. When the last one dies I hope it will be treated as an extraordinary human event.

    144
    Install the app to use these features.
    Mute Tap Solny
    Favourite Tap Solny
    Report
    Jun 18th 2015, 8:39 PM

    Actually the world’s oldest person is still alive, but that distinction is no longer held by Jerlean Talley.

    97
    Install the app to use these features.
    Mute Shawn Rahoon
    Favourite Shawn Rahoon
    Report
    Jun 18th 2015, 9:53 PM

    The world’s oldest person will never die!

    73
    Install the app to use these features.
    Mute Paul P O'Sullivan
    Favourite Paul P O'Sullivan
    Report
    Jun 18th 2015, 9:00 PM

    Pretty soon there won’t be any person on Earth left who was born in the 19th Century

    74
    Install the app to use these features.
    Mute Martin Harte
    Favourite Martin Harte
    Report
    Jun 18th 2015, 9:01 PM

    I bet she has seen some great things in her lifetime

    42
    Install the app to use these features.
    Mute Keith Masterson
    Favourite Keith Masterson
    Report
    Jun 18th 2015, 9:26 PM

    rip , the history that woman seen is unbelievable…

    40
    Install the app to use these features.
    Mute Bearsass Hairyarse
    Favourite Bearsass Hairyarse
    Report
    Jun 18th 2015, 9:26 PM

    Meh… I’ve woke up with worse!

    26
    Install the app to use these features.
    Mute Neal Ireland Hello
    Favourite Neal Ireland Hello
    Report
    Jun 19th 2015, 3:30 AM

    This is very disheartening but predictable.

    7
    Install the app to use these features.
    Mute M
    Favourite M
    Report
    Jun 19th 2015, 3:21 AM

    Jaysus theres people dying now never died before.

    6
    Install the app to use these features.
    Mute Sean Reynolds
    Favourite Sean Reynolds
    Report
    Jun 19th 2015, 9:56 AM

    Yep, it’s a bit morbid keeping tabs on the super-centenarians, but it is interesting to note that we shall soon approach the point where the eldest person on the planet will have been born in the 20th century. There will be nobody left who was born in the late 1800′s.

    4
    Install the app to use these features.
    Mute Stephen Earle
    Favourite Stephen Earle
    Report
    Jun 19th 2015, 4:21 AM

    I bet she was a smoker !!

    4
    Install the app to use these features.
    Mute Ken Fallon
    Favourite Ken Fallon
    Report
    Jun 19th 2015, 10:53 AM

    Gone too soon.

    3
Submit a report
Please help us understand how this comment violates our community guidelines.
Thank you for the feedback
Your feedback has been sent to our team for review.

Leave a commentcancel

 
JournalTv
News in 60 seconds