House prices show further signs of slowing as annual rate of increase falls to 13% – The Irish Times

0

The Irish housing market is showing clear signs of slowing as the squeezing cost of living and rising interest rates dampen demand. Figures from the Central Statistics Office (CSO) show the annual rate of price increase fell to 13% in July from 14% in June, continuing a decelerating trend seen in recent months. Year-on-year inflation in Dublin, where supply pressures are most acute, fell to 10.4% from 11.3%. Prices outside Dublin rose by 15.2%.

The CSO said the value of its residential property price index in July, at 164.9 points, was 0.8% above its highest level recorded at the height of the economic boom in April 2007. However , real house prices are not yet at the recorded level. in 2007 before the market crashed.

Price growth in the state’s housing market had followed a steep upward trajectory during the pandemic, fueled by factors such as increased savings, remote working and lower-than-expected supply.

However, cost-of-living concerns combined with higher interest rates – the European Central Bank raised interest rates by an all-time high of 0.75% earlier this month – began to exert pressure. downward pressure on the market. Higher interest rates mean higher mortgage repayments.

The latest figures show households paid a median (median price) of €295,000 for a home in the residential property market in the 12 months to July. The Dublin region recorded the highest median price (€415,000) over the 12 month period. In the Dublin area, Dún Laoghaire-Rathdown had the highest median price (€610,000), while South Dublin had the lowest price (€380,000). The highest median prices outside Dublin were in Wicklow (€414,000) and Kildare (€353,000), while the lowest price was €145,000 in Longford.

The latest data shows property transactions rose month-on-month by almost 9% to 4,443 in July and were worth a total of 1.6 billion euros.

The Institute of Professional Auctioneers and Appraisers (Ipav) said the slowdown in the rate of price increases was consistent with its own findings which are based on a six-monthly barometer of prices achieved by auctioneers.

“There was a noticeable change during the months of May and June where price increases slowed. We see this trend continuing. However, what is truly unfathomable are the major ECB interest rate increases of 0.5% in July and another 0.75% in August,” Chief Executive Pat Davitt said.

Mr. Davitt said that the current very high level of inflation is largely due to the energy crisis resulting from Russia’s invasion of Ukraine. “It’s largely out of the control of consumers who are going to be hit by such increases with further increases threatened,” he said.

Share.

Comments are closed.