Real estate prices rise at fastest rate in seven years


REAL ESTATE prices rebounded strongly in January as the pressure on potential buyers showed no sign of abating.

This was up 14.8pc for the year nationally.

This is the fastest growth rate in nearly seven years.

It also marks the 17th month that the annual home price inflation rate has increased stronger than the previous month.

Prices in Dublin rose 13.3pc in the year to January, with prices outside Dublin up 16pc, according to the Central Statistics Office.

The property price index showed prices in January rose 0.9 percentage points, down slightly from the growth rate of the previous three months.

Border counties posted the biggest gains, with a 24.7 percent increase in the year to January, reflecting strong demand for a limited housing supply as residents choose to move out of urban areas and work. work at home.

Similar factors are believed to be behind the 18.8 percentage point increase in property prices in the Southeast, while an 18 percent increase in the Midlands.

The country index is just 3.3 points below its 2007 peak during Celtic’s Tiger boom.

Residential property prices in Dublin are 11pc below their February 2007 peak, while residential property prices in the Rest of Ireland are 4.7 per cent below their May 2007 peak.

KBC Bank economist Austin Hughes said that the figures show that the property transactions that are taking place during the spring home buying season are happening at new record prices.

“So in many ways, the January figures underline the extent of price pressure on the Irish housing market right now.”

He said he hoped for a very bumpy road to a slower and more sustainable rate of house price growth in Ireland.

“The market is currently dominated by high demand for homes.

“In the short term, this is underpinned by a strong job market and the prospect of faster wage growth in 2022 as well as a rebuilding of household deposits this year,” said Mr Hughes.

However, he said increased global uncertainty and the possibility of a rate hike by the European Central Bank later this year, as well as expectations of an improved new housing supply, could lead to a recession. cautious number for the market.

“For these reasons, we may be close to peak pressure at the moment but we may not be at the top.”

Mr Hughes said prices are rising at a faster rate outside Dublin due to the fact that properties are cheaper.

This reflects the impact of affordability constraints and an increase in working from home.

However, with the return to the office regaining momentum as health-related restrictions ease, the relatively rapid rate of property price growth in more rural areas could slow again as the year approaches. 2022.

The CSO says the average, or typical, price of a home purchased in the year to January was €280,000.

The lowest median price for a home is €130,000 in Longford, while the highest average price is €595,000 in Dún Laoghaire-Rathdown. Real estate prices rise at fastest rate in seven years

Fry Electronics Team

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