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ASKING PRICES ROSE substantially in the second quarter of this year, with the median asking price for a house in Dublin increasing to €403,000, according to a new report.
The MyHome.ie/Davy property price report found asking prices rose 5% compared to the previous quarter.
The median asking price nationally is now €320,000 and outside of Dublin it is €270,000, which is a 6.1% quarterly increase.
The MyHome data show that homebuyers were bidding up transaction prices 6.6% above asking price at the median.
Figures from the Central Statistics Office last week showed residential property prices had grown by 14.2% nationally over the 12 months to April
Although prices are up on the previous quarter, annual asking price inflation has slowed to 10.9% nationwide.
Author of the report, Conall MacCoille, Chief Economist at Davy, said that 2022 should be a year of two halves, with price inflation slowing down in the second half of the year.
“Double-digit inflation and sharp price gains are set to give way to greater concerns on affordability, the economic outlook and the impact of the ECB raising interest rates,” he said.
He said that even though the slowdown has been marginal this quarter, anecdotal evidence from estate agents suggests that the momentum driving asking price inflation earlier in the year, is starting to slow.
In April, the average mortgage approval was €283,700, up 9.4% on the year, now above Celtic Tiger era levels for the first time.
“It may well be that Irish banks have taken a less conservative approach to their lending than during the pandemic, specifically, granting additional exemptions to the 3.5 times regulatory threshold on loan-to-income (LTI) ratios,” MacCoille said.
He said it is unlikely that will will be a repeat of the Celtic Tiger era as mortgage lending rules have kept the market in check.
“The expected rise in interest rates from the ECB, while notable, will also not have the same negative effect given the Irish market is well insulated at present,” he said.
Excess demand in the market meant, despite the increase in the average mortgage approval, 20% of homebuyers with mortgage approval are currently failing to secure a property each year.
MacCoille said there were some improvements in housing availability, with the number of properties listed for sale flattening off after consistent declines over the past two years.
However the 12,700 properties for sale are still well below pre-pandemic levels, he said.
“The situation is better in Dublin with the number of listed properties up 7% on the year.”
However, MacCoille said the average time to sale agreed has fallen to a fresh record low of 2.6 months, which is “indicative of the exceptionally tight housing market”.
The possibility of a modest fall in Irish house prices can’t be ruled out, he said, “correcting some of the froth built-up since the beginning of the pandemic”.
However, double-digit declines or a repeat of the Celtic Tiger era housing crash “seems very unlikely”.
The report also noted that upward pressures on rents have continued into the first half of this year, up 11.2% in the year to May.
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People priced out of any chance of owning a home, or having a family and their in home, Shame on this fffg gov, and the one before it. Absolute shame on them, theyve ruined a whole generation, possibly 2 generations..
@Patricia O’Brien: maybe even three.
@Patricia O’Brien: sure they can rent of the rich Patricia. That would be FFFG labour and the pds back in the day. It’s coming home to roost now Patricia and the majority of the electorate know already. The rich don’t care about the poor,or the middle class and that’s a fact. Change is needed and is coming.
@Paul Gorry: according to Leo… “the public finances are in good order” they don’t see people, they just see numbers on a spreadsheet… between childcare costs, fuel prices, its costs more to go to work then to stay at home, they’ve made our lives so much harder and they don’t care, just so long as the spread sheet looks good. Fffg one party, one failure.
@Patricia O’Brien: Patricia ingnore anything leo says it’s all about the truth now and nothing but the truth. The time has to come to take this government to task. Yer totally correct in your assessment of the Irish government. Failure.
@Patricia O’Brien:
People priced out of owning a home? If that was the case auctioneers up and down the country would be forced to close. There are people making planning applications with their local council to build.
@Just Some Guy: ah well brought up another scourge of society to inflate the market price for ill gotten gains. Give it a rest.
@Just Some Guy: would u ever cop on, just cos you’ve got ur head so far up fffg backside doesn’t mean we all so.
@Patricia O’Brien:
@Patricia O’Brien: Totally agree with your statement
Median house price is 403,000. Median wage is 39,000 or less.
That means you need more than 10 times your wage. But mortgage lenders only offer you 3 times your wage.
Eastern European countries have a higher rate of home ownership, who are socialist and pro-worker. Western European countries on housing have a subscription model where people buy housing for others, aka capitalism.
@Dean: You are comparing median Dublin prices against median salaries nationwide which is not a fair comparison. Also the mortgage lending ceiling is 3.5x salary not 3. You also ignore any deposit and that couples generally buy houses.
No, the median wage in Dublin is 36,000.
And mortgage lenders need 3.5 times the salary? Ok but these house prices, even before bidding, need more than 10 times the salary.
@Mickety Dee: Forget the arguments about each others comments. And stand for the future generations. This government offers absolutely nothing for the poor or middle class and that folks is the whole truth and nothing but the truth.
@Mickety Dee: is it 3x or 3.5x salary. Even at 3.5x salary only 5% of work force earn over the €100,000 pa to qualify. FFG’s turning homes into investment streams and commodities is nothing short of scandalous bordering on criminal.
@Dean: The inaction by FFG on housing has been going on since at least 2016 when Simon Coveny was Minister for Housing for two years and done nothing to alleviate the coming pain. It was acknowledged by Varadker in 2018 and still nothing was done, remember also at this stage FF propped up that government in the laughable “supply & confidence” deal. They don’t want people owning homes, it’s obvious. Let the people rent, HAP will pay for it and FFG and their cronies will milk the system, its all preplanned, happening and there is nothing we can do about it until we kick these bozos out of power come the next general election.
@Mickety Dee: so single people should just be left to swing in the wind should they ? The fact that a single person isn’t even considered for s mortgage is OK in ur book then is it ? Stop defending the vultures.
@Mickety Dee: why do you have to be in a couple to deserve a house?
@The Ghost of Dublin: Where did i say only couples deserve a house? They do have twice the spending power though.
the scary thing is – all the austerity that FF and FG laid on us to pay for the bank bailout, all those cuts to disability services among others etc etc have failed to even service that debt and we not have 3 times the debt we had in 2011. €250bn of debt leaves us very vulnerable now heading into what is likely going to be a painful crash.
@Peter McGlynn: ah sure we’ll be fine, we’ll just triple the USC
New built small 2 bed in Celbridge just outside Dublin is up at €400k
So 3.1% of the Irish work force can avoid a mortgage on home in Dublin.
@M Bowe: **afford
New build 3 bed terraced house in Miller’s glen in Swords €401,000 start off. 3 bed end of terrace €410,000. 6 bed on half acher garden with separate 2 bed granny flat outside Virginia in Cavan €410,000. I’ve installed alarms in them all. Such an absolute disgrace. I was part of that march last week. But nothing will be done.
Everybody expecting a different result by voting in the same shams. Corrupt cronies running the show. Wake up and smell the roses and get them self serving clowns out of government.
The housing market in Donegal is frozen due to suspected/actual mica in the blocks. €140,000 is the average price of a house but you will need cash as no bank will give you a mortgage for these defective houses.
That’s of the limited numbers that are for sale. The majority of people cannot sell their (once precious) asset for nothing. It’s a mess.
@S: and these are the people that get up early for their job – supposedly the people Varadkar and this government support. What a farce – they care about no one but speculators and vulture funds.
It’s a scam right from the top,the public have been rode for years and don’t even know it by these totally corrupt and greedy politicians.hope they rot
Delivering into a new development in Greystones yesterday. Was told that they started at 500k and are now at 550k. Look nice but no bigger than a new semi-detached anywhere else.
New built small 2 bed in Celbridge just outside Dublin is up at €400k
@Stealth: Are you selling!
@Adrian Stewart: ye couldn’t afford it anyway.am i right or wrong adrian?
I guess anyone looking for a house today has to work 365 days a year before tax. Having said that ye can have Christmas day off.And before the entitled begrudgers come in with the holiday here and and holiday there crap. I don’t care.
Time to emigrate
Does anyone seriously believe that if there is a new government, people will begin to sell their homes at half price?
Class
@HarveyLemonade: exactly nail on the head.
And we all will keep voting FF/FG , like a monkey ramming a square peg into a circle hole.
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