House prices almost 1% higher than previous Celtic Tiger peak but inflation cools rising costs

The median price of a home in Ireland is now nearing the €300,000 mark, reaching €295,000 in the 12 months to July 2022.

Property price inflation in Ireland remained in double-digits in July, with house prices now almost 1% higher than their previous Celtic Tiger peak.

The median price of a home in Ireland is now nearing the €300,000 mark, reaching €295,000 in the 12 months to July 2022.

However, inflation in house prices has been tempering somewhat in recent months and stands at 13% in the 12 months to July 2022 compared to 14% in June and over 15% in February and March.

Last month, the Central Statistics Office’s Property Price Index reached the mid-2000s property boom levels for the first time since the economic crash.

Reaching this high watermark placed the spotlight firmly on Government policy in this regard, a year on from the landmark Housing for All initiative which the coalition has defended and has claimed is working at delivering housing.

The opposition, however, says otherwise and has claimed things have not improved.

The Irish Examiner reported on Monday that a report delivered to Housing Minister Darragh O’Brien highlighted huge concerns around the delivery of housing in Dublin. 

“There are exceptional challenges and high risks facing the sector due to inflationary pressures, materials, labour supply, and the war in Ukraine,” it said.

Separately, as third-level students return for the next academic year, some are resorting to taking out loans and even deferring their courses due to the cost and shortage of student accommodation.

Furthermore, homelessness levels have also eclipsed their previous pre-pandemic peak.

According to the CSO, the cost of second-hand homes increased by 16.3% in the second quarter of 2022 compared to the same period last year. New homes were 7.7% more expensive this year than last.

At the same time, there is still high demand in the sector with 4,443 dwellings purchased by households at market prices in July 2022. This was a 16.2% increase on July 2021 and an 8.7% increase on the number of homes bought in June 2022.

Houses in Cork’s southside had a median price of €330,000 while the northside was €256,000. Picture: PA

In the first seven months of 2022, one-third of house purchasers were first-time buyers while over half (53.6%) were moving home. The other 13.9% were non-occupiers, such as buy-to-let landlords and funds.

The rate of inflation remains higher outside of Dublin, with prices rising by 15.2% outside the capital compared to 10.4%.

In the west of the country, property inflation is almost at 20% and at 18.4% in the south-east.

In Cork and Kerry, house prices have risen by 12.9% in the last year.

The most expensive place in the country to buy a home is Blackrock in Dublin, with a median price of €720,000. The top five most expensive areas to buy were all in Dublin. The cheapest place to buy in Dublin — with the D10 Eircode — had a median price of €272,000.

Outside of Dublin, the most expensive place to buy was Greystones (€505,670), followed by Bray (€447,500). Both are in Wicklow. Next was Kinsale in Cork, with a median price of €400,000.

A house in the Eircodes covering Cork’s southside had a median price of €330,000 while the northside was €256,000.

Waterford city had a median price of €235,000 for a home while Limerick had a price of €240,000.

The cheapest place in the country to buy was Clones in Monaghan, with a median price of €117,500.