Asking prices soar 7% over year - report
Asking prices for houses nationwide went up by 7% over the year, according to new analysis.
Asking prices outside Dublin rose by 7.9% while rates in the capital were up 5.1%, according to the latest MyHome property report compiled in association with Bank of Ireland.
It says strong demand for properties is still a notable feature of the market, with the typical residential transaction being settled for 7.5% above the asking price.
This trend has been driven by several factors including significant increases in both the volume and value of mortgage approvals, persistently inadequate supply, and the loosening of mortgage lending rules.
Asking prices nationally rose by 4% on the quarter, by 2.2% in Dublin and by 5.4% in the rest of the country.
This means the median asking price for new instructions nationally was 395,000 euros in Q2.
Asking prices in Dublin were up 5.1% (Niall Carson/PA)
In Dublin it was 495,000 euros and in the rest of the country it was 340,000 euros.
Joanne Geary, managing director of MyHome, said it is “promising” that the threat of EU-US tariffs has not had a major negative effect on the market to date.
However, noting the volatile geo-political climate is “particularly unhelpful for the economy”, she added: “It remains to be seen what the coming months will bring.
“As ever, we need to focus on what we can actually control, which means continuing efforts to significantly increase our national stock of properties, and urban apartments in particular.”
The author of the report, Conall MacCoille, chief economist at Bank of Ireland, said: “Uncertainty following President Donald Trump’s announcement of ‘Liberation Day’ tariffs hasn’t been sufficient to dent Ireland’s housing market.”
The analysis also found the average mortgage approval in May was 337,000 euros, up 6.7% on the year.
Mr MacCoille said: “Meanwhile, one in six properties is sold by 20% or more over asking price, indicating that competition for homes remains fierce.
“Another factor at play is loosening of the Central Bank mortgage lending rules.”
The typical first-time buyer borrows 3.4 times their income in 2024, up from 3.2 times their income in 2022.
Mr MacCoille said this change has pushed up house prices by 15,000 to 20,000 euros.
He added: “That said, the process of rising leverage may be coming to an end. The proportion of first-time buyers taking out a mortgage with a 3.5-4x loan-to-income multiple is now steady, at just under 50%.
“If so, Irish house price inflation is more likely to return to mid-single digit territory.”
The report predicts an improvement in home completions in 2025 – with the number of houses under construction in Dublin at end-2024 up 20% on the year.
However, Mr MacCoille warned it will still “fall well short” of the 50-60,000 units required.
The average time to sale agreed is now 2.6 months, again close to a historic low and indicative of a very tight market.
