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Irish Daily Mirror
07-07-2025
- Business
- Irish Daily Mirror
House asking prices soar by average of 7% in last year
Asking prices for houses nationwide went up by 7% over the year, according to new analysis. Asking prices outside Dublin rose by 7.9% while rates in the capital were up 5.1%, according to the latest MyHome property report compiled in association with Bank of Ireland. It says strong demand for properties is still a notable feature of the market, with the typical residential transaction being settled for 7.5% above the asking price. This trend has been driven by several factors including significant increases in both the volume and value of mortgage approvals, persistently inadequate supply, and the loosening of mortgage lending rules. Asking prices nationally rose by 4% on the quarter, by 2.2% in Dublin and by 5.4% in the rest of the country. This means the median asking price for new instructions nationally was €395,000 in Q2. In Dublin it was €495,000 and in the rest of the country it was €340,000. Joanne Geary, managing director of MyHome, said it is "promising" that the threat of EU-US tariffs has not had a major negative effect on the market to date. However, noting the volatile geo-political climate is "particularly unhelpful for the economy", she added: "It remains to be seen what the coming months will bring. "As ever, we need to focus on what we can actually control, which means continuing efforts to significantly increase our national stock of properties, and urban apartments in particular." The author of the report, Conall MacCoille, chief economist at Bank of Ireland, said: "Uncertainty following President Donald Trump's announcement of 'Liberation Day' tariffs hasn't been sufficient to dent Ireland's housing market." The analysis also found the average mortgage approval in May was 337,000, up 6.7% on the year. Mr MacCoille said: "Meanwhile, one in six properties is sold by 20% or more over asking price, indicating that competition for homes remains fierce. "Another factor at play is loosening of the Central Bank mortgage lending rules." The typical first-time buyer borrows 3.4 times their income in 2024, up from 3.2 times their income in 2022. Mr MacCoille said this change has pushed up house prices by €15,000 to €20,000. He added: "That said, the process of rising leverage may be coming to an end. The proportion of first-time buyers taking out a mortgage with a 3.5-4x loan-to-income multiple is now steady, at just under 50%. "If so, Irish house price inflation is more likely to return to mid-single digit territory." The report predicts an improvement in home completions in 2025 - with the number of houses under construction in Dublin at end-2024 up 20% on the year. However, Mr MacCoille warned it will still "fall well short" of the 50-60,000 units required. The average time to sale agreed is now 2.6 months, again close to a historic low and indicative of a very tight market.
Irish Examiner
07-07-2025
- Business
- Irish Examiner
Trump tariffs: 'No sign of shock to Irish property market'
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.
