Home prices soar to Celtic Tiger levels as lender raises mortgage rates by 1 percent

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Property prices are at their highest since the Celtic Tiger boom.

Rice rose 14.1 percent in June, with an 11.8 percent increase in Dublin, the CSO says.

The surge in home prices comes as mortgage lender Avant Money is set to hike its mortgage rates starting Monday.

The Central Statistics Office said its ownership is now at its highest level since the April 2007 boom.

Prices outside Dublin are up 16 per cent in the year to June.

In June, approximately 4,087 home purchases by households were submitted to the Revenue Commissioners at market prices.

This is an increase of 17.7 percent compared to the 3,473 purchases in June last year.

Existing homes accounted for 3,308, or 81 percent, of home purchases filed with the Revenue Commissioners in June.

The rest of 779 were new dwellings.

Prices rose 1.2 percent nationwide in June, up from a monthly increase of 0.8 percent in the previous month.

This has dashed potential buyers’ hopes that the rate of increase would slow down.

The region outside Dublin that saw the biggest 12-month rise in house prices was the border, made up of Cavan, Donegal, Leitrim, Monaghan, Sligo at 20 per cent,

This likely reflects people moving from cities back to the areas they grew up in to work remotely.

At the other end of the scale, home prices in the Midwest, made up of Clare, Limerick, Tipperary, rose 12 percent.

CSO statistician Viacheslav Voronovich said: “The national index has now reached 163.6 points, its highest level at the height of the real estate boom in April 2007.”

The median price of an apartment bought in the 12 months ended June 2022 was €290,000.

The lowest median price for a house in the 12 months to June 2022 was €140,000 in Longford, while the highest median price was €605,000 in Dún Laoghaire-Rathdown.

In the 12 months to June 2022, households paid a median price of €290,000 for an apartment on the housing market.

The Dublin region had the highest median price (€415,000) in the year to June. Within the Dublin region, Dún Laoghaire-Rathdown had the highest median price (€605,000), while South Dublin had the lowest (€375,000).

The highest average prices outside Dublin were recorded in Wicklow (€400,000) and Kildare (€350,000), while the lowest was in Longford at €140,000.

Avant Money, which has introduced some of the lowest mortgage rates on the market, said it will raise its lending rates from Monday.

Market funding costs have risen sharply this year, and with an ECB rate hike already announced, more are expected, the lender said.

The changes will affect new borrowers and not those with existing fixed rates with the Spanish-owned lender.

Avant Money’s three-year fixed income product is up 0.30 percentage point, with the new rates now starting at 2.25 percent.

Avant Money’s four- and five-year fixed income products will rise 0.50 percentage point

The seven-year fixed rate product is up 0.70 percentage points.

Avant Money offers longer-term, fixed-rate “One Mortgages” with fixed terms of up to 30 years.

The cost of these mortgages will increase by 1 percentage point.

There is no immediate change for existing Fixed Price customers.

https://www.independent.ie/business/personal-finance/property-mortgages/property-prices-surge-to-celtic-tiger-levels-as-lender-increases-mortgage-rates-by-1pc-41907298.html Home prices soar to Celtic Tiger levels as lender raises mortgage rates by 1 percent

Fry Electronics Team

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