'Grim picture for homebuyers' as property prices inflated 9.7% in a year

Angela Keegan, managing director of MyHome.ie, said supply was far too low to accommodate soaring demand for housing. Picture: Andrew Matthews/PA Wire

The latest report from property website MyHome.ie paints a “grim picture for homebuyers”, as asking prices have inflated by 9.7% nationally in the past year.

The Q4 2021 report, in association with Davy, found prices rose by 7.4% in Dublin and by 10.6% elsewhere around the country.

Quarterly price inflation also rose “uncharacteristically” sharply for the usually quiet winter months – by 1.3% nationally, by 1.7% in Dublin, and by 1.1% elsewhere around the country.

In November, the average mortgage approval for first-time buyers was €258,800, up 5.8% on the year; for movers, it rose to a record high of €304,000 – up 11.9%.

In Q3 2021, the average drawdown for movers was €284,800 – rising above Celtic Tiger peak levels for the first time.

Stock of homes listed for sale in mid-December fell to an historic low of just 11,300, down 21% on 2020 levels. Just 8,300 homes were listed for sale outside Dublin, down 24% on the year to levels not previously seen.

The average time to sale agreed also fell to a fresh record low of just three months in Q4 2021, from 4.2 months during the summer.

Angela Keegan, managing director of MyHome.ie, said supply was far too low to accommodate soaring demand for housing.

"We have never seen such a lack of stock on the MyHome.ie website and, given the significant increase in savings among prospective homebuyers, it is doubtful we will see much let-up in demand during 2022." 

We can only hope that restrictions are not reintroduced as the construction sector needs to be given every opportunity possible to continue to build properties,” she said.

A newly expanded local authority home loan scheme comes into effect on Tuesday, which aims to support access to home ownership for people on low or modest incomes, who cannot get sufficient funding from commercial lenders.

Housing Minister Darragh O’Brien has announced the income ceiling for single applicants to the scheme has been raised from €50,000 to €65,000 in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow.