Trump tariffs: 'No sign of shock to Irish property market'

US president Donald Trump speaking to reporters on board Air Force One on Friday. Despite a warning from MyHome earlier this year, the US-EU tariff wrangling has not impacted the Irish homes market. Picture: Jacquelyn Martin/AP

A much-feared economic shock to Ireland’s property market by Donald Trump’s tariff policies has failed to materialise.

Earlier this year, MyHome had warned the speed at which house prices are increasing could be slowed by the prospect of a tariff war between the US and the EU.

MyHome warned the economic fallout from such a “war” could seriously dampen house sales because Ireland’s housing market has become too heavily dependent on “high-income earners working in multinational sectors”.

However, MyHome’s latest e report states there is “no sign of any Donald Trump hangover in Ireland’s housing market”.

“Clearly uncertainty following [US] president Trump’s ‘Liberation day’ tariffs hasn’t been sufficient to dent Ireland’s housing market.

There is little sign of uncertainty relating to president Donald Trump’s tariff policies holding back demand from prospective homebuyers. 

It instead points out that vendors felt sufficiently confident in April, May, and June to raise their prices regardless of the expected tariff war by a further 4%, or by €20,000 on the quarter.

It said typical transactions are being settled 7.5% above the asking price. One in six properties are being sold by 20% or more over.

“Competition for homes remains fierce,” the report states. It found that the average approval in April was €337,700, up 7.8% on the year, reflecting the current pace of average pay growth at 5%-6%. The report states: 

We now know the average first-time-buyer borrowed 3.4 times their income in 2024, up from a 3.2x multiple in 2022. 

MyHome managing director Joanne Geary. The firm's latest report states that the average first-time-buyer borrowed 3.4 times their income in 2024, up from a 3.2x multiple in 2022. Picture: Tom Honan

“This change has pushed up house prices by €15,000-€20,000.”

MyHome managing director Joanne Geary said: “When MyHome released our property report for Q1 last April, there was considerable concern about the effect of a potential trade war on the property market.

“Now, after months of speculation, threats, and uncertainty, we can see that the potential of punitive tariffs has had a limited impact on the housing market, with strong demand still in evidence.”

She said annual asking price inflation around the country is now running at 7%, compared with 8% at the end of the first quarter.

Dublin has seen an increase of 5.1% in asking prices over the year while, outside the capital, asking prices have risen by 7.9%.

The median price in Cork was €325,000 in the second quarter of the year, with inflation at 10.2% and Cork City prices up even more sharply by 11.7% to €335,000.

“Average mortgage approval values and volumes have soared to record highs,” she said. 

The most recent Banking & Payments Federation Ireland data for May shows total mortgage approval values are up by a staggering 17.8% over the year, while the number of approvals has risen by 10.5%. 

“Competition for homes is still intense, with an average time to sale agreed of just 2.6 months and the average home selling for 7.5% over the asking price.”

She added: “As has been the case for some time, we have yet to see a significant uptick in supply.

“At end-June 2025 there were 12,563 properties listed for sale on MyHome, up by just 1% compared with the same period of 2024.

“This stagnant level of growth is unhelpful and will give no solace to a Government in desperate need of home completions.”

She said that while there will be "some improvement" in the number of completed houses in 2025, the numbers will "fall well short" of the 50-60,000 units required in 2025.