Housing market sees lull in prices as inflation eases

Housing market sees lull in prices as inflation eases

Dublin also boasts a market that is close to a third larger than the same time last year.  Picture: Andrew Matthews/PA

Housing prices in Ireland remained stable in the three months to end of September, despite ongoing turmoil in the market.

The latest edition of rental site Daft.ie’s sales report suggests an average asking price across the country in the third quarter of the year of €311,514, up 0.1% on the figures seen at the end of June.

Despite inflation remaining high — at 7.7% year on year in the housing market — it has reduced from the 9.2% being seen earlier in the year.

Munster’s three cities differed from Dublin — where prices remained largely unchanged over the three-month period — with Cork city's average asking prices rising by 0.2% to €332,125, while  Limerick's is up to €251K, and Waterford to €228,487.

Dublin prices are still significantly higher than they were a year ago, ranging from €380,000 in the north of the county, a 10% jump from 2021, to €654,000 — a smaller rise of 4.9% — in the affluent south of the region.

There is some good news in the report, in that the supply of homes for sale has risen slightly across 2022 — explaining the relative lull in price hikes, particularly in Dublin, where there are now more than 4,000 houses on the market compared with just 2,700 at the beginning of the year.

Positive news

Reacting to the figures, Ronan Lyons, an associate professor of economics at Trinity College Dublin, said the likely figure for new homes required in the coming three decades across Ireland is between 42,000 and 62,000 per year — roughly double the planned 28,000 new homes per year espoused under the Government’s signature Housing For All plan.

He said that overall availability in Dublin is now about a third higher than it was a year ago, and higher again in the rest of Leinster at 40%, suggesting “an easing off in inflation, after a prolonged bout during Covid-19", though elsewhere in the country the available stock remains “very low”.

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From florist to fraudster, leaving a trail of destruction from North Cork, to Waterford, to Clare, to Wexford and through the midlands ... learn how mistress of re-invention, Catherine O'Brien, scammed her way around rural Ireland.

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