Irish property prices have been a hot topic in recent years, with steep increases making it difficult for many to afford a home. However, according to the latest data from MyHome.ie, there may be some relief on the horizon. The report shows that there has been a “modest slowdown” in the rate of price increases, offering hope for those looking to buy or rent in Ireland. In this article, we will explore the key findings of the MyHome.ie report and what they mean for the Irish housing market.
In Q1 of 2023, asking prices for homes declined by 0.3%, despite the continued challenge of limited housing supply, according to the latest quarterly property price report from MyHome.ie. While asking prices have decreased for the third consecutive quarter, they are still 3.2% higher YoY. The report indicates that the median asking price nationally in Q1 was €310,000, with homes selling for only 1% more than the asking price compared to a 6% difference a year ago. The median price in Dublin decreased by 0.8% to €395,000. Outside Dublin, the median price increased by 0.2%, reaching €265,000 in Q1, and still 5% higher than levels seen in the previous year due to very low levels of housing stock. The report warned that stretched valuations are focused in Dublin, with the average price in January 2023 at nine times’ average income. Despite the data showing that frothy pandemic-era valuations have decreased, the Irish property market is not in free fall, according to the report, due to buoyant demand, limited housing supply, the European Central Bank not raising interest rates as aggressively as the Bank of England or Federal Reserve, and the Central Bank of Ireland loosening the mortgage lending rules. The forecast for asking price inflation in 2023 has been revised to 1.5%, down from 4%, with Mr Conall MacCoille, Davy’s chief economist and the report’s author, suggesting that the outlook is uncertain, and small price decreases cannot be ruled out.
In conclusion, the latest report from MyHome.ie indicates that the Irish property market has experienced a modest slowdown in price growth. While this may come as good news for buyers who have been struggling to keep up with rising prices, it is important to note that the market remains strong and competitive. As we look ahead, it will be interesting to see how factors such as Brexit and the COVID-19 pandemic continue to impact the market in the coming months. Regardless of what happens, it is clear that the Irish property market remains a key driver of the country’s economy and a crucial factor in the lives of countless individuals and families.
