House price inflation slowed to its lowest level in two-and-a-half years in June as a combination of increased supply, higher borrowing costs and uncertainty caused by the Iran war cooled the market.<\/p>\n
The latest Residential Property Price Index from the Central Statistics Office indicated that prices nationally rose at an annualised rate of 5.6 per cent in June, down from 6.1 per cent in May.<\/p>\n
This was the lowest level of price growth recorded in the Irish market since January 2024. <\/p>\n
Property price inflation in Dublin fell to 4.6 per cent, down from 5 per cent in May, while annual price growth outside Dublin was 6.4 per cent.<\/p>\n
The latest snapshot comes amid several industry reports which point to a slowdown in prices in certain segments of the market. The trend has been linked to a contraction in real wages and a pick-up in borrowing costs denting the purchasing power of buyers.<\/p>\n
The European Central Bank (ECB) lifted interest rates for the first time in nearly three years in June in response to higher levels of inflation. The bank is expected to lift rates again in September, adding to borrowing costs here.<\/p>\n
The figures indicated that the average price of a home purchased in the 12 months to June was \u20ac438,743 while the average in Dublin was \u20ac597,130.<\/p>\n
The average price paid in D\u00fan Laoghaire-Rathdown, the most expensive local authority area in the State, was \u20ac795,756.<\/p>\n
The median price paid for a home nationally in the 12 months to June was \u20ac396,000. <\/p>\n
High prices at the upper end of the market tend to distort the average which is why statisticians consider median prices \u2013 the point at which half of all homes sold were more expensive and half cost less \u2013 more reflective of the overall market.<\/p>\n
\u201cA higher level of caution appears to have entered the market over recent months,\u201d said Genevieve McGuirk, chief executive of the Institute of Professional Auctioneers and Valuers.<\/p>\n
\u201cPractically, that means people are, wisely, a bit more careful, taking time over their decisions, and agents are having to caution sellers about their price expectations,\u201d she said.<\/p>\n
\u201cWhile some locations are seeing an increase in development, overall, the supply situation is very problematic and that is likely to keep prices elevated,\u201d McGuirk said.<\/p>\n
Trevor Grant, chairman of Irish Mortgage Advisors said, while any slowdown will be welcomed by first-time buyers, \u201cthey\u2019ll need to bear in mind that prices are still climbing, just less steeply\u201d. <\/p>\n
\u201cThe fundamental problem remains the same as it has been for years now: Ireland still isn\u2019t building enough homes to meet demand from a growing population,\u201d he said.<\/p>\n
\u201cEvery quarter that completions fall short, that gap has a knock-on impact on prices,\u201d Grant said.<\/p>\n","protected":false},"excerpt":{"rendered":"House price inflation slowed to its lowest level in two-and-a-half years in June as a combination of increased…\n","protected":false},"author":2,"featured_media":26937,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,3662,61,60],"class_list":["post-598182","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-housing-crisis","tag-ie","tag-ireland"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/598182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=598182"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/598182\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/26937"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=598182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=598182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=598182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}