Banks are lending more money to homebuyers than during the build-up to the 2008 property market crash with fewer houses than ever available. Average asking prices for homes rose 9.7% across the Ireland last year, to €290,000.

Banks are increasing the amounts loaned to those they are approving for mortgages, particularly anyone who already owns property. In November, the average mortgage given to anyone moving home was a record €304,000, almost 12% higher than a year earlier.

With banks lending this much and such little supply on the market it is clear that we will be burdened with a dysfunctional market for some time to come.

The prediction is that house prices would rise by 4.5 per cent this year 2022.

In Dublin, property prices rose 7.4% last year to €380,000, including a jump of 1.7% in the last quarter. Outside the capital, prices rose 10.6% in 2021 to €245,000, gaining 1.1% in the closing three months of the year. In Galway city, prices were up 2.2% on the year to €285,000. In Cork city they rose 1.9% to €295,000. In Limerick city they increased 7.7% to €210,000 while in Waterford city they increased 6.3% to €169,000.

Leave a Reply