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HOUSE PRICES SURGED by more than 13% in the past 12 months as the supply of homes remains limited.
Two separate reports by property websites Daft.ie and Myhome.ie found a major increase in prices, while noting that the availability of properties is significantly lower than last year.
The two quarterly reports both found that listed prices have risen at a much faster rate outside Dublin than in the capital.
The Daft.ie report found that asking prices are up 18% in Munster, 16.1% in Leinster and 15% in Connacht/Ulster, when compared to the April-to-June period in 2020.
Meanwhile in Dublin, list prices were 8.4% higher during the same period, the fastest rate of inflation since early 2018.
Price increases outside Dublin were roughly twice as large. In the cities of Cork, Limerick and Waterford, listed prices were 14.3%-15.5% higher in the second quarter, while in Galway city, prices rose 12.6% in the same period.
The MyHome.ie report found that asking prices in Dublin jumped by 10.6% year-on-year, while outside the capital they spiked by 13.6%.
The two reports also show substantial increases in asking prices between the first and second quarters of 2021.
The MyHome.ie report found that asking prices nationally rose by 6.7% – in Dublin by 4%, and outside Dublin by 7.4% – between the first three months of the year and the second three.
The surging prices mean that nationally, the listed price for an average home is now €303,000. It stands at €412,000 in Dublin and €254,000 outside of the capital, according to MyHome.ie.
While asking prices have skyrocketed, the supply of homes has decreased even further.
The Daft.ie report found that the total number of properties available to buy on 1 June was just above 12,300.
That was up slightly from the 11,900 recorded in March, but remains one of the lowest figures recorded since the advertising of properties for sale online first began.
The total availability of homes for sale nationwide at the start of June was one third lower than the same date last year and just half the amount for sale in June 2019.
“Very weak supply continues to plague Ireland’s housing market,” said Ronan Lyons, author of the Daft.ie House Price Report and economist at Trinity College Dublin.
Unlike much of the last decade, when urban centres drove house price inflation, the Covid-19 housing market has seen the opposite trend. Inflation is less severe in Dublin than elsewhere and, outside Dublin, less severe in the other cities than the rest of the country.
The author of the MyHome.ie report, Davy chief economist Conall Mac Coille, said housing demand was now “red hot”.
“The average time to sale agreed has fallen back to a record low of 3.8 months, indicating that whatever stock is available is being purchased ever more quickly,” he said. “Once again transactions are now being settled above asking prices.”
“Whilst demand has remained robust, reflecting that pandemic-related job losses have been concentrated amongst younger age-groups and lower paid workers, price gains primarily reflect the lack of housing supply.”
MacCoille said he now expects house price inflation this year to reach 8% nationally. He added that the news that asking price inflation has returned to double-digit levels will “heap even more pressure on the Government to address the housing crisis”.
However, he warned that there are no easy answers as the problems are being caused by Ireland’s structurally high build costs and a lack of construction sector capacity.
Reacting to the Daft.ie report, the Institute of Professional Auctioneers and Valuers, said the increase in listed prices is echoed in actual sales prices by auctioneers around the country.
“Indeed, in the current market with supply and demand being the most seriously out of kilter it has been in living memory, our members are seeing even higher prices achieved for more exclusive properties,” said Pat Davitt, IPAV Chief Executive.
Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.
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If you’re a FFG voter then well done, this is what you voted for. To everyone else, hang in, change is coming.
@Declan Doherty: What’s the alternative? Sinn Fein? No thanks!
@Joe_X: honestly I’d be one of Sinn Feins biggest critics and don’t believe in their politics at all, but something needs to change and FFFG have made it very clear they don’t want to change anything. They get away with this because they don’t fear for their seats. TDs need to know that if they don’t listen to the people then they will lose their seats. So even if SF do nothing in government, it’s worth it just to give FFFG a wake up call.
@John Black: My thoughts exactly
@JusticeForJoe: Me too, when people question the ineptitude of FFG with regard to housing the standard response is always, “What would SF do?”. Pathetic response trying to absolve FFG for doing nothing.
@John Black: What would Sinn Fein do? Uh what rock have you been under? Eoin O Broin is the most respected politician on housing for decades – he’s a housing specialist and runs rings around his contemporaries.
The housing situation is NOT an unintended consequence of FFG politics – it’s exactly what they want.
Same with insurance – gov voted to delay legislation agreed in Dail to tackle insurance racket. They are NOT on the side of citizens – whether home owner or not home owner.
@Declan Doherty:
Their polices of leaving it to “the market” to provide housing only results in one goal; make house prices higher. It doesn’t provide housing for the general public.
@John Black: FFFG brought in some very hard hitting measures against private landlords which were popular vote getters but inarguably they have reduced rental supply and increased rental prices as landlords have voted with their feet and sold up. I would worry that some of Sinn Féin’s policies could make the problem worse by trying to make it better.
@Sean: What SF policies would they be Sean, please elaborate and link.
@Sean: With regard to housing, FFG are space cowboys, gangsters of land. Nobody could do worse and the harrowing truth is that its a predetermined policy, a callous manoeuvre against the citizens of Ireland.
@Dean: Do you really believe it’s currently left to the market?
Great news. Another bubble. Sure what could go wrong?
@Padraig O Muirthile: It’s grand, Leo says he’s gonna build 40,000 houses a year… And sure if there’s anything we know it’s that we can trust Leo.
@ÉirePalestine: I thought that comment would be deleted all right.
I’ll try again.
With him building all those houses and working in the covid wards, and his job as Tánaiste and his job as Leader of FG and his job as a TD, he’ll be wrecked by bed time. Poor Matt will be involuntarily celibate for the foreseeable future.
@Padraig O Muirthile: Comments like yours should be deleted so I’m not too surprised. Focus on the politics and forget about Leo’s private life it is none of your business.
@Sean: Except when he’s jogging with the Canadian Prime Minister for a nice photo op or getting backstage passes for Kylie, or telling us all how great he is for quadruple jobbing during the first few days of the pandemic, or when he shows up for the pride parade with Matt. Is that all serious politics too? I would think the same about any politician and their partner. It’s a joke. Poor Leo, crawling into bed, wrecked, after his hard days work building 40,000 houses. Super Leo. The man who, like Atlas, carried the world on his shoulders. Sure where would you get the energy for any funny business after that?
A country with one of the lowest densitys in the world, with a people known for construction around the world.. Very intelligent lads.
You have to remember a very high percentage of FFG TDs, councillors etc. own property, or the wife, sister, uncle etc. Also they are cosy with developers, builders etc. The TDs remit is to keep house prices and therfore rental values increasing constantly.. and to be fair they have been very successful over the years.. its self interest basically.. you need people in government who are not part of the property elite.. whoever they may be.. i dont care… so long as you vote for people who own property then prices will go up, how could it not… its quite straightforward..
By the time my House is ready to move into I could probably afford the sell it and make a profit. County is a joke..
Supply dips??? Was there a hurricane or earth quake that destroyed a % of the houses in Ireland? What you mean ( taboo) is that there is an increase in Demand, which is increasing at neck breaking speed in the last 10 years.
@Merlin Lancelot: Those Vulture funds need their gravy Merlin. Keeping houses and flats empty to drive up the prices of those they drip onto the market. A shortage is good for business. It means we know we have to pay more for where we are. Now they can raise the price for everybody and get an extra few bob for the ones they throw out as a sop.
God bless capitalism :)
@Hugo Bugo: There’s not so much about our housing market that’s capitalist. Regulations on what you can build, where you can build, how you can build, the taxes and levies you must pay to build, the list goes on. And then in the sale of housing you have more taxes and regulations on how much you can borrow and other regulations on repossession and banking that result in some of the highest mortgage interest rates in the EU.
I’m not saying none of these are needed but I’m so tired of people claiming capitalism did this when the level of market interference from incompetent politicians and bureaucrat is off the charts.
@Podge: Welcome to the Journal, where people misunderstand things loudly and repeatedly and still think of themselves as valued contributors to national discussion.
Why always with the ‘Asking Prices’? Call an estate agent, they’ll tell you they’re getting asking price plus 50-100. So all these studies are purely speculative and actually paint a more optimistic picture than the reality……
The bubblers and the SF’ers are here already.
In financial markets the majority are always WRONG. if the dog on the street expects a crash at any time now, it wont happen.
Market bubbles burst after a parabolic increase far surpassing the previous highs. This is nowhere near happening yet.
Sinn Fein were spouting numbers knowing they wouldn’t be in power. They’ve set themselves up with a strong opposition – “If we were in power we’d have a GAZILLION houses built by now!”. Give me a break…
@Lance: a parabolic increase? Last time it was exponential. The nose dive was elliptical and the nadir just non-linear. Then we had a sinusoidal recession with a logarithmic tail so we are due a Bessel function of recovery with a chaotic erf(x). Go away with your parabolas!
@Lance: You put that in quotation marks. Any chance of a link to where you found the quote ? In fact, any links to any quotes made by an official Sinn Fein source which references how many houses they would build if in Government ? Not saying they haven’t given a number, just interested to see how it compares to your gross exaggeration.
@Tommy Roche: A Gazillion is not a real number. Sinn Féin will build i houses. You know, the imaginary number i.
anotherbubble to be burst and another recession
@Geoff Bateman: Not if supply doesn’t meet demand.
Have you ever seen council workers fix hole in road I despair for Ireland
Well that will suit our government, made up of owners of multi properties, who make laws that suit landlords. Funny that.
YEEEEEEHAAAAW
“Soft landing”, “Sure what were people thinking buying houses they couldn’t afford”, “Better get on the ladder quick, or you’ll be left behind”.
The Central Bank is acting against the legitimate interests of Irish citizens to own their own homes, with mortgage rules that don’t apply to vulture funds OR Local Authorities who can buy up homes without such restrictions.
The Central Bank should be supporting citizens and pressing for low cost affordable homes, to avoid the inflated reckless mortgages currently required to purchase homes in Ireland. Irish homes are significantly overvalued which can mean only one thing .. another Crash is coming …
1974 Kenny Report recommended a Referendum on Housing which would have prevented the 2008 Crash and the next Crash … looming …
2014 the Constitutional Convention also recommended a Referendum on housing. Germany is a good benchmark, as are others.
Property rights are not adversely impacted as the German case demonstrates.
https://www.change.org/p/irish-referendum-on-family-home-special-status
Irish people need to bring their brains to the Polling Booths and vote for those who support a Referendum on Housing, for the sake of their kids and grandkids …
have your say