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House prices continue to rise despite impact of a third lockdown

Property prices are still rising strongly, with housing market activity continuing despite the country being in its third lockdown.

he latest annual asking-price inflation now stands at 4.2pc, according to MyHome.ie.

Price rises outside Dublin were higher, at close to 5pc. The asking price for a home nationally is €284,000, according to the online property portal.

The report indicates that interest in the property market is at a historic high.

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Author of the report, economist at Davy, Conall MacCoille, said all the data suggests that housing market activity should bounce back rapidly once the restrictions are lifted.

The MyHome.ie report states that annual asking-price inflation went up by 4.2pc nationwide, by 4.1pc in Dublin and by 4.8pc elsewhere around the country.

The mix-adjusted asking price for new sales nationally is €284,000, while the price in Dublin is €396,000. Elsewhere around the country it is €236,000.

Mr MacCoille said newly-listed properties are seen as the most reliable indicator of future price movements.

He said that a striking feature of the report was how housing market activity had persevered through the third lockdown.

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“Remarkably, new listings for sale in the first quarter were down only 30pc compared with 2020, versus 80pc to 90pc annual falls during the first lockdown.
“All the data suggests that housing market activity should bounce back rapidly once the restrictions are lifted.”

Mortgage approvals in January were up 12pc on the year, with the average approval up 8pc to a fresh cyclical high of €256,000.

This means there is no evidence of tight credit conditions holding back homebuyers, the economist said.

Managing director of MyHome.ie, Angela Keegan, said that interest in the property market was at a historic high.

This meant it was imperative that the supply issue be dealt with.

“Traffic through the MyHome.ie website is up 13pc to 30pc on different metrics, such as users, sessions and page views,” she said.

“As such, it is crucial that the construction sector be allowed to return to normal activity in order to address this obvious demand and safeguard the market as we emerge from Covid.”

Meanwhile, house prices were up by 5.9pc across the European Union in the last three months of last year compared with the same period a year earlier, according to Eurostat.

In Ireland, prices rose by 0.6pc in the same period.

Last month, the Central Statistics Office found that the pace of property price rises picked up in January. Prices were up 2.6pc in the month compared with the same month last year.

Irish Independent

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