Though home prices have gone up recently, Ireland’s real estate market appears to be levelling out.
In spite of an almost 2.5% annual increase, mortgage brokers say the market is beginning to stabilise.
The most recent data was issued Tuesday by the Central Statistics Office.
According to a company spokesman, “The national Residential Property Price Index increased by 2.4% in the 12 months to May.”
However, April’s annual growth rate of 3.4% was the highest for the year up to that point.
Mortgage experts note that this is significantly lower than the 14.4% annual growth rate seen in May of previous year. They note that in May of this year, home prices in Dublin were down 0.2% from May of previous year.
In addition, outside of Dublin, yearly price increases of 4.5% are occurring, but at a lesser rate than in the past.
According to the Association of Irish Mortgage Advisors, prices for homes have levelled out as of late. This is based on data from the Central Statistics Office.
Its chairman, Trevor Grant, remarked, “The slowdown in property price growth suggests that property prices are beginning to stabilise.”
Dublin city had a 2.8% yearly drop in home prices, while Dun Laoghaire-Rathdown, home to some of Ireland’s priciest real estate, saw a 1.6% drop.
Mr. Grant also cited data showing a rise in mortgage drawdowns and approvals for first-time buyers from the Banking and Payments Federation Ireland.
He remarked, “It’s good news for anybody who are thinking about purchasing a home. Potentially more purchasers will be encouraged to enter the already active market.
In Q1 2023, there were 10,497 drawdowns for first-time buyers, a 5.9% increase from Q1 2022.
Over half of the mortgages approved in Q1 2023 went to first-time buyers.
For the sake of stability and trust for both buyers and sellers, “a levelling of house prices can contribute towards a more balanced housing market.”
But he did issue a warning, saying, “With more buyers entering the market, it is crucial that the Government starts to hit its targets around housing supply, otherwise we may see house prices start to spiral again.”
The percentage of units sold in May that were brand new was 18.5%, up 25.6% year over year, while the percentage that were already established homes was 81.5%. First-time buyers accounted for 1,567% of all acquisitions in May, purchasing 483 new properties and 1,084 pre-existing dwellings.
In the 12 months ending in May, 33.9% of property transactions reported to Revenue were made by first-time purchasers.
The total number of homes purchased rose by 18.9% from May 2022 to this May.
There were 4,435 property purchases totaling €1.6 billion, an increase of 36% compared to April.
New home and flat prices in the first quarter of 2023 were 11.1% higher than in the same period the previous year, according to data from the CSO. The cost of a used house went up by 3.5% throughout that time frame.
The west (Galway, Mayo, and Roscommon) witnessed the biggest increase in housing prices outside of Dublin, according to CSO statistician Viacheslav Voronovich.
The opposite was true for the south-east (Carlow, Kilkenny, Waterford, Wexford) and south-west (Cork, Kerry) regions.
In the year leading up to May 2023, the median home price in the Eircode region of A94 Blackrock was €741,503, while in the Eircode area of Ballyhaunis it was €127,500.