"The housing market has been dysfunctional for some time."
House prices throughout Ireland have risen by 9% in contrast with 2020, a new report has revealed.
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.
"While the annual inflation hike for quarter three is not that high, it is clear that the property market is still significantly overheated, and that we are some way off towards redressing the imbalance between supply and demand," the report begins, quickly adding that the market "has been dysfunctional for some time".
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.
Nationally, year-on-year inflation fell from 13.2% in the second quarter, its highest value since early 2015, to 9.1% in quarter three.
The Daft report also points to a potential easing of the "Covid spike", though the issue of supply and demand represents a considerable challenge for the government going forward.
"Despite the improvement in the number of properties coming on to the market, overall availability remains extraordinarily tight – a testament to very strong demand for homes for sale in the country currently," said Ronan Lyons, author of the report and Professor of Economics at Trinity College Dublin.
"The total number of homes for sale nationwide on September 1st was 12,675 – up slightly from the March low of 11,919 but not much more than half of the pre-covid average of 22,500 in 2019.
"Compared to the early 2010s, when there were more than 50,000 homes for sale around the country, it’s a different market entirely," Lyons added.
According to both reports, prices in cities are rising at a much lower rate than those in rural areas, the latter of which accounts for a rise of 12.9% with each passing year.
Dublin saw its slowest rate of inflation in a year with a rise of 4.9%, in contrast with Limerick (8.4%), Cork (5.8%) and Galway (3.1%).
The total number of properties available to buy in Ireland on 1 September was slightly below 12,700. Currently, there are 50% less properties available to buy than one year ago.
In terms of where the most expensive and least expensive houses are found, it looks like this:
Most Expensive
South County Dublin: (Average house price - €619,852)
South Dublin City: €438,998
Wicklow: €379,335
North Dublin City: €367,659
Least Expensive
Leitrim: €154,196
Roscommon: €167,403
Sligo: €167,779
Longford: €167,865
You can read the full MyHome report
here and the full Daft report
here.
