House prices are rising at fastest rate in TEN years
The typical listed price nationwide in the first half of the year is €357,851 – 12.3% higher than the previous year and 40% higher than at the onset of the Covid pandemic.
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Prices nationally rose by an average of 3%, according to the latest Daft.ie House Price Report, released on Monday.
House prices are spiralling at their fastest rate in ten years to a new average cost of almost €358,000. Pic: Getty Images
The current rate of inflation in the market is the highest seen in the ten years since the Central Bank's mortgage lending rules were introduced. The surge in inflation is relatively broadly based, with the Dublin figure of 12.3% in line with the average for the rest of the country.
In the rest of Leinster, the annual increase in prices is 14.3% – close to the average in Limerick city at 12.8% and Galway city on 12.5%. In Waterford city, the rate is higher again at 15.2% while in Cork city the increase in prices is slower at 8.6%.
The report also shows that average prices in Dublin stand at €467,913, while the figure is €426,348 in Galway city, €369,938 in Cork city and €311,086 in Limerick city. The rest of the country has average house costs of €309,954, which is up 12.5%.
Prices nationally rose by an average of 3%. Pic: Getty Images
The Daft.ie report found that the strong increases in housing prices are related, once again, to 'very tight supply'.
The number of second-hand homes available to buy nationwide on June 1 stood at close to 12,100. This is largely unchanged from the figure a year ago and less than half the pre-Covid average of almost 25,000.
Report author Ronan Lyons, associate economics professor at Trinity College Dublin, explained that the fastest increase in prices since mortgage lending rules were introduced a decade ago highlights the importance of addressing Ireland's 'chronic and worsening' housing shortage.
The current rate of inflation in the market is the highest seen in the ten years since the Central Bank's mortgage lending rules were introduced. Pic: Getty Images
The mortgage rules restrict first-time buyers to borrowing up to four times their gross annual income, while second/subsequent buyers can borrow up to 3.5 times their gross annual income. All buyers also need a minimum deposit of 10%.
Mr Lyons said: 'The substantial increases over the past year in almost all parts of the country are linked to the lack of second-hand supply. This in turn is related to the increase in interest rates earlier in the decade.'
Housing campaigner David Hall said: 'The State needs to build more houses.
'We are running out of time as there isn't an endless supply of emergency accommodation and we already see that with 15,000 people on our streets.'
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