Figures show that property prices shot up again in January 2022. With a 14.8% hike in the year nationally, this indicates the fastest pace of growth see in nearly seven years.
Central Statistics Office statistics reveal that prices in Dublin process rose by 13.3% in the year to January, with prices outside Dublin up by 16%. According to the property price index, prices in for January were up 0.9%, slightly down on the rate of increase in the previous three months.
Border counties saw the biggest increase with 24.7% in the year to January, which demonstrated a demand for a limited housing stock as people opted to move to rural areas.
The national index is just 3.3% lower than its highest level in 2007.
Dublin residential property prices are 11% lower than their February 2007 peak, while residential property prices in the rest of Ireland are 4.7% lower than their May 2007 peak.
Current transactions in the spring home-buying season are occurring at new record prices says KBC Bank’s Austin Hughes. But the economist’s view is that there could be a bumpy path to a more sustainable pace of increase in Irish house prices. “The market is currently dominated by buoyant home-buyer demand. In the near term, this is underpinned by a strong jobs market and the prospect of faster wage growth in 2022 as well as a rebuilding of household deposits over the turn of the year,” Mr Hughes states.
Hughes comments that prices are rising at faster rates outside Dublin, as properties are cheaper. But with the return to the office regaining momentum the relatively rapid pace of growth in property prices in more rural areas may ease back as the year progresses.
LSL News.