HOUSE prices in Ireland have seen a 9% increase over the past 12 months as the supply of homes continues to lag far behind demand.
A report by Daft.ie has revealed the full extent of the country-wide price hike over the past year – attributing it partly to the limited availability of properties.
In real terms, this means an increase of almost €24,000 in the average house price in just 12 months.
While the figure is 22% below the Celtic Tiger peak in the mid-2000's, it remains three quarters above the housing market's lowest point in 2012.
Significant regional differences can be glimpsed beneath the surface of the national picture, with city prices galloping ahead of rural areas, which are experiencing more incremental gains.
Dublin underwent a 4.9% increase in the year to September, its slowest rate of inflation in a year.
Galway city had a similar boon, rising 3.1% per year, while Cork city rose by 5.8%, and outstripping both, Limerick city rose by an impressive 8.4%.
The largest annual increases were in Mayo and Leitrim, where prices are a whopping 20% above what they were this time last year.
Here is a breakdown of Daft’s findings for the year-on-year change in house prices in the countries major cities in Q3:
Dublin City: €399,323 – up 4.9%
- Cork City: €307,464 – up 5.8%
- Galway City: €316,060 – up 3.1%
Limerick City: €230,585 – up 8.4%
- Waterford City: €204,759 – up 6.3%
The top four most expensive areas to buy a home are:
- South County Dublin: €619,852
- South Dublin City: €438, 998
- Wicklow: €379, 335
- North Dublin City: €367, 659
The four cheapest areas to buy a home are:
- Leitrim: €154,196
- Roscommon: €167,403
- Sligo: €167,779
- Longford: €167,865
Similar findings were reported in the Myhome Q3 report, which found that annual asking price inflation saw a 9% nationwide hike as buyers “aggressively” pursued available properties
Adding an important caveat, the report said that the 9% annual inflation rise is a reduction from the figure of 13% recorded in quarter two of this year, suggesting a post-pandemic slowdown in upward trends.
The report’s author Ronan Lyons, economist at Trinity College Dublin, said: “The latest signals from the sales market suggest that, thankfully, the worst of the Covid-19 squeeze has passed.
"Inflation has eased a bit and there has been a modest improvement in the number of homes available to buy at any one point. Nonetheless, while the Covid-induced spike in market conditions may be passing, the underlying issues remain.
"The stock for sale remains well below pre-Covid-19 levels, while many parts of the country are still seeing prices that are at least 10% higher than a year ago.
"Additional supply remains key to solving Ireland’s chronic housing shortage and, with the pandemic appearing to be under control, housing remains a critical issue – economically and politically – for policymakers to address.
"The Government's 'Housing for All' plan contains a welcome boost in social housing activity but construction costs, the key determinant of viability, do not appear to be on policymakers’ radars.”