Home prices are seven times higher as supply dwindles

Wanted property prices rose nearly 10% in 2021, according to an analysis by real estate listing website, myhome.ie.

Asked price inflation came in at 7.4% in the capital, but at 10.6% elsewhere in the country.

Quarterly prices also rose 1.3% nationally in the last three months of the year, with price inflation in Dublin at 1.7%.

It was at 1.1% outside the capital.

The report showed that the adjusted asking price of the property at the national level was 311,000 euros at the end of 2021.

In Dublin, its price reached 421 thousand euros, while in other parts of the country it reached 263 thousand euros.

« The unwelcome message from this quarter’s MyHome report is that there is little sign of conditions easing, » said Kunal McCwell, Davey’s chief economist and author of the myhome.ie report.

He added: « This reflects a tightening of the market, as the stock of homes for sale has fallen to a new record low of just 11,300. In addition, the Irish labor market is doing very well, which is increasing demand for housing. »

He explained that the shortage of inventory for sale or rent is most acute outside the capital, which is also evidenced by a marked decrease in the average agreed-upon selling time of just three months nationwide.

McQuayle said price inflation forecasts for 2021 and 2022 are now likely to be beaten.

“We expected an 11% rise in the Residential Price Index (RPII) through 2021 and 4.5% in 2022. However, the Residential Price Index (RPII) inflation rate rose by 13.5% in October, so overall output is now likely to outpace The past is on our expectations. A prediction of the climate. »

The report comes as the central bank continues to review its lending rules, which are set to expire next month.

Analysis by myhome.ie shows that home prices are now seven times the median income.

“Even so, the Central Bank of Ireland and the Economic and Social Research Institute (ESRI) estimate that mortgage lending rules have stopped home prices from rising an additional 10-25% above current levels,” said Conal McCoyll.

According to estimates, housing completions are expected to reach 22,000 when the 2021 figures are published.

A central bank report published before the onset of the Covid pandemic indicated that about 34,000 homes would have to be built each year over the next decade just to meet demand.

“It is promising to see construction activity increase for seven consecutive months through November, but the stark reality is that we will unfortunately be living with a dysfunctional real estate market for some time,” Angela Keegan, Managing Director of MyHome. ie said.

« We’ve never seen such a shortage of inventory on MyHome.ie, and given the surge in savings among potential homebuyers, it’s doubtful we’ll see a significant drop in demand during 2022, » she added.