24K EXTRA ON HOMES IN 12 MONTHS
ANOTHER surge in house prices has seen an extra € 24,000 heaped on Irish property prices in just 12 months.
The average cost nationwide at the end of August was € 287,704 and €399,323 in Dublin, according to a Daft. ie report for the third quarter of 2021.
A separate study from property website MyHome. ie found the “overheated” housing market is still starved of supply, with prices being bid- up aggressively by buyers “increasingly desperate” to secure a home.
Conall MacCoille, chief economistatDavyandauthorofthe MyHome.ie report, said: “This behaviour is evident in transactions being settled well above asking prices.
“For a limited pool of 450 properties sold during the summer, we have calculated the transaction price was 6.5 per cent higher than the asking price, compared with a premium of 2.7 per cent in the second quarter of 2021.”
Growth
There are 13,500 properties listed for sale on MyHome.ie, up slightly from 12,700 at the end of August but still well down on around 20,000 pre-pandemic.
Mr MacCoille added: “Given population growth is adding 30,000 units at a minimum each year, coupled with circa 100,000 units of latent demand built up over the past decade, it will take some time before homebuilding can start to address the housing shortage.”
The report found annual asking price inflation rose by 9 per cent nationwide, 7.3 per cent in Dublin and 10.1 per cent elsewhere.
Angela Keegan, managing director of MyHome.ie, said: “While the annual inflation hike for quarter three is not as high as the previous quarter, it is clear the property market is still significantly overheated, and that we are some way off towards redressing the imbalance between supply and demand.
“As always, we believe demand and supply need to be balanced, and as such we are calling for a major increase in construction activity into 2022 and beyond.”
Daft. ie found biggest rises in Mayo and Leitrim, where prices are more than 20 per cent more than a year ago.
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