Home sales slow as eyewatering house prices bite – Geowox report

Some house prices increased 5.3% in the second quarter compared to prices in Q2 2023, but house sales slumped by 13% during the same timeframe

A total of 12,212 homes was sold in the Republic and Dublin had the highest number of sales at 3,594 units.

Eyewatering house prices may have contributed to the slowing number of home sales in recent months, suggested a nationwide report.

The latest Geowox Housing Market Report showed home sales prices increased 5.3% in the three months to the end of June compared to the same period a year earlier.

However, house sales slumped by 13% during the same timeframe. 

Geowox head of data Marco Giardina said: 

Home transaction volume is on a strong downward trend. Meanwhile, prices maintain a steady growth path in rural and urban areas. 

A total of 12,212 homes were sold in Ireland and Dublin had the highest number of sales at 3,594 units.

Out of the total number of homes sold, around 2,400 of these were new dwellings, a 7% decline on the same time a year earlier.

A separate report by property website MyHome.ie suggested that house prices are likely to increase even further this year.

National asking price inflation for a home rose annually to 7.3% by the end of June, the fastest rate of growth in nearly two years, according to the MyHome.ie report.

It found asking price inflation continues to be fuelled by a hot labour market in addition to poor supply and looser lending rules.

Bank of Ireland chief economist Conall Mac Coille said the “fierce competition” in the last three months is a bad omen for buyers ahead of the traditionally busy summer trading season before the market cools heading into the winter.

Meanwhile a State wealth fund, part of the National Treasury Management Agency, announced the completion of four investment commitments totalling €229m aimed at speeding up the delivery of newly constructed homes in Ireland to combat the ongoing and chronic housing crisis in the country.

The Ireland Strategic Investment Fund, Isif, said the new dwellings will be for a mix of occupiers including owner-occupiers, renters, students and those who are in need of social housing.

The four investments bring total Isif commitments to housing investments to more than €1.5bn to date.