Darragh O'Brien hopeful rise in house prices will "level off" next year
"We're seeing some slowdown in the acceleration of house price increases already."
Minister for Housing Darragh O'Brien has said that he is hopeful the rise in house prices will "level off" next year.
Speaking in Donabate on Monday O'Brien said that there has already been a "slowdown" in the "acceleration of house prices".
"I hope to see this level off and we're seeing some slowdown in the acceleration of house price increases already," he told reporters.
"Supply will increase substantially next year and I hope we would see a requisite tapering off of the level of increases that we're seeing," he added.
A new survey, published on Monday, found that house prices throughout Ireland have risen by 9% in contrast with 2020.
The report, conducted by property website MyHome.ie in association with the Davy Group, notes that the housing market is "still starved of supply" as potential homeowners "aggressively" bid on the stock that is available.
A separate study carried out by Daft.ie underlines this trend, highlighting an average nationwide price of €287,704 in the third quarter of 2021, up by €24,000 on last year.
"There is no doubt that the restricted market that we have there and restricted supply, particularly over the last two years with Covid, has had a real impact," O'Brien continued.
"What we need to see is more supply, frankly. And the indicators for next year are good. They're good in the sense we're seeing housing commencements increase quite substantially over the last couple of months.
"I believe the response to demand, but also the response to the Government's plan in Housing for All, will lead to significant increases in commencements.
The Minister added that people are "moving into the regions" and "being able to find that they're able to work in the regions" as "everything isn't just Dublin centric or east coast centric".
He said that while the migration out of Dublin centric housing market is a positive, it has caused an increase in the prices of homes outside of the capital.
"That's a good thing, But we're seeing with that as well because of restricted supply, some increases there outside of Dublin that we would not have seen before, but from a lower base," he said.
"That's why one of the main things within our plan is to try to drive affordability in through the sector."
Main Image: Leah Farrell/RollingNews.ie.