House price inflation slowed to 8.6 per cent in November, down from 9.8 per cent the previous month, as higher mortgage costs continued to cool the market.
The latest data from the Central Statistics Office (CSO) shows the annual rate of increase in Dublin fell to 7 per cent in November, down from 8.3 per cent.
Increased borrowing costs and general cost-of-living pressures have triggered a rapid cooling down in property markets across the world and a correction in some of the more overpriced markets. The property industry here is still predicting positive growth in prices this year.
The latest figures show the year-on-year increase in prices outside the capital was 9.8 per cent.
Taylor Swift tops the economic charts, electoral victory for Centrist Dads and Apple’s awkward €13bn
Corkman leading €11bn development of Battersea Power Station in London: ‘We’ve created a place to live, work and play’
Record 4,600 submit applications for south Dublin cost-rental apartments
Typical price paid for home by first-time buyer up €88,000 on five years ago
Buyers paid a median (midpoint) price of €300,000 for a property in the 12 months to November. The Dublin region had the highest median price (€425,000) and, within the capital, Dún Laoghaire-Rathdown had the highest median price of €620,000. The highest median prices outside of Dublin were in Wicklow (€420,000) and Kildare (€368,847), while the lowest was €150,000 in Longford.
The CSO said there were 4,901 transactions involving residential homes in November, up 14.1 per cent on the previous month, while the total value of transactions filed was €1.8 billion.
Prices of new dwellings have risen by 93.3 per cent from their trough in the middle of 2013, while the prices of existing homes are now 131.9 per cent higher than at their trough in 2012.
Industry body Brokers Ireland said while the rate of increase continues to decline gradually there appears to be little prospect of any dramatic change in house prices for the foreseeable future, given the scarcity of supply and high demand.
Spokesperson Rachel McGovern said the drop-off in dwelling commencements in the third quarter of 2022 was “worrying”.
“Increasing interest rates and sizeable increases in input costs are, unfortunately, impacting housing starts. These factors do not augur well for aspiring buyers, particularly those on average incomes,” she said.
Trevor Grant, chairman of the Association of Irish Mortgage Advisors, said: “Anyone who was hoping that residential property prices would fall significantly in 2023 is likely to be disappointed. But price growth is slowing.”
“Logic suggests that prices increase when demand exceeds supply and fall when supply exceeds demand – but this does not hold true in this particular instance,” he said.
“Whilst supply is currently improving with a greater number of new builds for completion achieved and more houses coming on to the second-hand market, regretfully, demand still comfortably exceeds supply,” he said.
“There are thousands of hungry house-hunters out whose primary goal is to secure a home and unfortunately, they are all vying for a limited number of suitable properties. Whilst the frenzied bidding activity seems to have dissipated, there is still plenty of competition,” Mr Grant said.
