A 9.7% increase in asking prices for residential properties nationwide in 2021, alongside a record low of 11,300 homes listed for sale on MyHome.ie. In Dublin the rate of asking-price inflation rose by 7.4%, and by 10.6% elsewhere around the country.
Prices also rose sharply by 1.2% in Q4 during the normally quiet winter months. This is reflective of the market getting tighter with the stock of homes listed for sale having fallen to a fresh historic low.
On top of that, the strength of the country’s labour market is also driving housing demand.
The rise in quarterly asking price inflation means the mix-adjusted asking price for new sales nationally is now €311,000, €421,000 in Dublin, and elsewhere around the country it is €263,000.
MacCoille added that Ireland will likely see the 2021 and 2022 inflation forecast beaten now. The prediction was an 11% rise in Residential Property Price Index (RPPI) inflation for 2021 and 4.5% in 2022 — but the real number hit 13.5% in October.
Ultimately, supply is too low to meet the soaring demand for housing nationally. What’s more, given the increased savings and spending power among those looking to buy, experts say it’s unlikely Ireland will see any let-up in demand this year.