One in five homes are now selling for 20% or more above the asking price, as a \u201cchasm\u201d has opened up between prospective first-time buyers and existing homeowners unwilling to sell up.<\/p>\n
The latest quarterly house price report from MyHome, with Bank of Ireland, has said the average residential property sold this year went for \u20ac426,000, eight times the average wage and the highest level since 2009.<\/p>\n
Despite this, annual asking price inflation is at its lowest rate for almost two years, as affordability becomes increasingly stretched.<\/p>\n
\u201c[This report] provides evidence house price inflation is finally slowing down,\u201d said author and Bank of Ireland chief economist Conall MacCoille.<\/p>\n
\u201cThe market is still extremely difficult, currently just 13,000 properties listed for sale on MyHome, flat on the year and still down from the levels exceeding 20,000 seen prior to the covid-19 pandemic.<\/p>\n
\n Liquidity in the existing homes market remains weak. Many would-be vendors are unwilling to sell, for fear of securing a home once they sell their own.\n <\/p>\n
The report suggested that, in September, homes sold on average 8% above the original asking price, which is a fresh high. The issue was more prevalent in Dublin, where homes are selling for 10.4% more than asking.<\/p>\n
While it highlights that housing completions in the 12 months to June were 32,700, and the highest since the Celtic Tiger era, these figures still remain far below Government targets and what was touted prior to the general election last year.<\/p>\n
The MyHome report also suggests 34,500 homes will be completed across 2025, against a Government target of 41,000.<\/p>\n
The number of new properties on the market in the third quarter of this year stood at 8,343, a 7.6% fall on the same quarter in 2024.<\/p>\n
And, while inflation is softening, all of these factors continue to put strain on the market.<\/p>\n
\u201cA chasm exists between first-time buyers desperate to secure a property and existing homeowners unwilling to move,\u201d Mr MacCoille said.<\/p>\n
\u201cFirst-time buyers have drawn down 27,000 mortgages over the past 12 months \u2014 the highest level since 2007. The 9,200 mortgages to movers over the same period is still close to the lowest level in 10 years.\u201d\u00a0<\/p>\n
He added Ireland’s housing market now appears to be \u201cpausing for breath\u201d and a deterioration in affordability \u201cseems to be levelling off for now\u201d.<\/p>\n