House prices have stabilized in the third quarter of the year, mainly due to an increase in the number of houses being put on the market, Daft.ie’s latest house prices report revealed.
While some price stability will be welcomed by people trying to make their way up the property ladder, the perception that the surge in supply is partly due to landlords fleeing the market means that pressure on tenants could mount if their Pool of available properties has dried up.
But also a post-Covid normalization of the housing market, where buyers can inspect houses in person and sellers put properties on the market when they see more liquidity in supply, is also seen as a reason for increased price stability.
The nationwide average price for home ads is now €311,514, up from €287,704 last year and €263,750 in 2020.
Nationwide, average list prices grew 0.1 percent in the third quarter of 2022, the ninth consecutive quarter of growth but also the smallest.
This meant that prices nationwide in the third quarter of 2022 were 7.7 percent higher than in the same period last year.
But list prices in the third quarter of the year were 0.7 per cent lower in Munster and 0.5 per cent in Connacht/Ulster than in the second quarter, reversing the recent trend of sharp price increases.
The number of properties available for purchase nationwide as of Sept. 1 was 15,461, up 22 percent from the same period last year.
Across Dublin, quoted prices were flat between June and September after strong price growth in the second quarter.
There were just over 4,000 homes for sale in Dublin on September 1, up 30 per cent from just over 3,100 on the same day a year ago.
Quoted prices in Leinster (outside Dublin) rose 1.1 per cent between early July and late September, for the ninth consecutive quarter of growth but a significant drop from recent times.
The continued rise in prices in the region in the third quarter means prices in Leinster are now 7.6 per cent higher than last year on a year-on-year basis.
Throughout Münster, quoted prices fell by an average of 0.7 percent between June and September.
Annual price inflation in Munster is now 7.6 percent, although it has cooled from a peak of 17 percent in the first quarter of 2021.
On September 1, there were just over 4,100 properties on the market in Munster, 8 percent more than 3,800 a year ago.
In Connacht and Ulster, quoted prices fell by an average of 0.5 per cent between June and September.
On 1 September there were almost 3,300 properties on the market in Connacht/Ulster, 15 percent more than just over 2,800 on the same day a year ago.
Each quarter, Daft.ie surveys over 1,000 real estate market participants, asking them for their views on the market as a whole and their own intentions. The latest report finds that just over half of those who want to buy, but not right away, cite the need to save for a down payment as a key factor in delaying the home purchase.
Almost 70 percent of respondents cite the lack of housing as a factor in delaying home purchases, up from 80 percent two years ago. The lack of supply has been a relatively constant factor in the market over the past five years.
The report’s author, Associate Professor at Trinity College Dublin Ronan Lyons, says preliminary figures from the 2022 census suggest underlying housing needs in Ireland are likely to be in the range of 42,000 to 62,000 dwellings over the next three decades, not far double the underlying level of 28,000 new homes per year that underpins Housing For All, launched in 2021.
Referring to Dublin, he said the more houses there are on the market, the less upward pressure – and more downward pressure – there is on prices.
“The ‘magic number’ – if there can be one at all – is somewhere around 4,500. There are more houses on the market in Dublin and there is likely to be some downward pressure on prices. Fewer apartments and prices are likely to rise. We can see these patterns over the last decade of Dublin’s housing market – and indeed (if we) expand it to other parts of the country,” he says.
“The open question for the coming months is whether falling demand will also play a role, given rising interest rates and significant non-housing cost inflation for virtually the first time in 15 years,” he added.
https://www.independent.ie/irish-news/news/house-prices-begin-to-stabilise-as-more-homes-come-on-the-market-42016120.html House prices are beginning to stabilize as more houses come onto the market