Current Trends In The Irish Property Market – (2024 to end June)
Overview
Asking prices for properties are up 7.3%* to end June nationally
Average earnings have risen by approx 5%* which has led to an increase in affordability
ECB cut its main interest rates by 0.25 percentage points at its June meeting. Again this increases affordability. This was the ECB’s first rate cut. More are expected.
Loosening of Central Bank lending rules has given rise to first time buyers with a loan to income ratio of between 3.5 times – 4 times income.
Strong competition among homebuyers as houses selling for significantly higher values than asking prices.
Another factor impacting prices is the continual poor levels of property supply in the market
Analysis
The overriding message after the first half of 2024 is that house prices have gained further momentum. Asking prices are up over 7%* year on year across the country.
The Irish labour market has remained strong with average earnings up significantly and this was always likely to push up house prices. The relaxation of central bank rules for first time buyers has seen the share of first time buyers with a loan to income ratio on their mortgage between 3.5 and 4 times jump from 6% in 2022 to 36 % last year*.
Competition between homebuyers has continued into the second quarter and the low levels of supply has exasperated the situation and added to house price inflation. The strength of the labour market is very positive but without adequate supply to meet demand, competition will remain strong. The rate of new house build activity is promising; however it will take time for this to have a significant impact on the market.
Delaney Estates – July 2024
*Source – Myhome property report
