Housing Market Resurgence: Property Prices Surge 2.9% Annually in November
In a promising turn of events, the property market has witnessed steady annual growth for the third consecutive month, with prices surging by 2.9% in November. The latest data from the Central Statistics Office (CSO) reveals a marked improvement, indicating a shift from the recent slowdown in the housing sector.
Regional Dynamics: A Closer Look at Dublin and Beyond
Contrary to expectations, property prices outside of Dublin outpaced those within the city, marking a significant trend reversal. While Dublin experienced a modest 0.9% increase – its first since April of the previous year – regions beyond the capital saw a robust 4.4% rise in November. House prices in Dublin climbed by 1%, while apartment prices saw a 0.6% increase.
Highlighting the local variations, Fingal led in Dublin with a 2.5% growth, while Dún Laoghaire-Rathdown experienced a marginal decline of 0.1%. Outside of Dublin, the Mid-West region, comprising Clare, Limerick, and Tipperary, witnessed the highest surge in house prices at 7.4%, followed by the Midlands and the Mid-East at 3.3%.
Median Home Prices and Regional Disparities
The CSO’s findings indicate that the median price of homes purchased in the 12 months leading to November reached €325,000. While Longford reported the lowest median price at €161,000, Dún Laoghaire-Rathdown topped the scale with a median price of €622,000. The Eircode areas also presented noteworthy variations, with A94 “Blackrock” recording the highest median price at €725,000 and F45 “Castlerea” marking the least expensive at €135,000.
Market Trends: New Homes and Existing Dwellings
According to the CSO, 4,618 home purchases were filed with Revenue in November, reflecting a 5.8% decrease from the same period last year. Notably, prices of new homes in the third quarter were 10.4% higher than in 2022, while existing dwellings witnessed a 1% decrease during the same period.
Concerns and Hope Amidst Market Fluctuations
Trevor Grant, Chairman of the Association of Irish Mortgage Advisers, expressed concerns over the continued annual increase in house prices, posing challenges for potential homebuyers in 2024. Grant remains optimistic about recent changes to the Help to Buy and First Home schemes, hoping they will aid first-time buyers, provided they can find available homes.
Addressing the persistent issue of housing supply, Grant referred to recent figures from Myhome.ie, highlighting the lowest housing stock since the Covid pandemic. Additionally, a report from the SCSI unveiled that 36% of residential sales instructions in Q4 2023 were landlords selling their properties, exacerbating the shortage of rental accommodation. Grant emphasized the urgency for people to own homes, asserting that, in most cases, buying remains a more cost-effective long-term option compared to renting.
Source: IRISHCONSTRUCTION.COM
