House prices are picking up but the annual rate of increase is slowing slightly

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THE annual rate of increase in real estate prices has slowed slightly. Prices in August were up 12.2% on the year to August 2021.

his is down slightly from a 13.3% rise in July.

And prices rose 1.3pc during the month, according to the Central Statistics Office (CSO).

However, this is a slightly faster rate of increase than in July when there was a 1pc increase, with a 1.1pc increase in June.

The continued rise in prices is occurring despite increases in mortgage interest rates and rising costs of living, which should eventually dampen much of the steam in the market.

Property experts said the latest figures are based on purchase deals made months ago, meaning the CSO index may not yet show a price drop.

Prices in Dublin increased by 9.7%, with prices outside Dublin increasing by 14.2%.

The region outside Dublin that saw the biggest rise in house prices was the West, which includes Galway, Mayo and Roscommon at 19.1pc.

At the other end of the scale, the South West region, made up of Cork and Kerry, saw an increase of 10.4% during the year.

The median, or typical, price of a home purchased in the year to August was €295,100.

The lowest median price for a house in the 12 months to August 2022 was €149,500 in Longford, while the highest median price was €615,000 in Dún Laoghaire-Rathdown.

The most expensive Eircode area last year was at Blackrock in Dublin, with a median price of €725,000.

The cheapest was Ballyhaunis, Co Mayo, with median prices of €120,000.

In August, some 4,295 home purchases were filed with the Revenue Commissioners, an increase of 14.1% on the 3,764 purchases in August last year.

CSO statistician Viacheslav Voronovich said: “Residential real estate prices have increased by 12.2% in the last 12 months, compared to 13.3% in the year to July 2022.”

In Dublin, residential property prices increased by 9.7%, while property prices outside Dublin were 14.2% higher than a year earlier.

He said the strongest growth in Dublin property prices was in Fingal at 10.6%, while Dún Laoghaire-Rathdown recorded a rise of 9.2%.

The latest price figures come after the Economic and Social Research Institute (ESRI) said house prices were overvalued by at least 7%.

And he said the real estate market is expected to experience a slowdown in the coming months.

The think tank said greater inflationary pressures and higher interest rates would weigh on demand, it said in its latest quarterly bulletin.

However, he refrained from saying whether this would lead to a house price correction or a period of price declines, suggesting it was too early to tell.

And Daft.ie found that there had been an increase in the number of homes being put on the market.

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