Austin Hughes: Bumpy but welcome slowdown in house price inflation may lie ahead

A new all-time peak in Irish property prices is likely to be seen in the second quarter of this year — but does this mean a cooler property market or threaten another collapse?

Irish house price growth may ease on reducing affordability and the dampening effects of looming ECB rate increases, cost-of-living pressures, and uncertainties around the economic outlook, says Austin Hughes.

Official figures released last week show that Irish house price inflation accelerated for the 18th month in a row to reach 15.3% in February, the fastest increase since April 2015. Despite sharply higher prices, demand still seems to be very strong.

Transactions in February were almost 12% higher than a year earlier, further underlining the current buoyancy of the property market, marked by robust demand for homes, strong jobs growth, and supportive demographics amid shortages.