Annual RHouse price inflation accelerates in the Southwest region in the second quarter, with prices rising at the fastest pace since 2017
According to the latest residential market analysis from leading DNG real estate advisers, house price inflation is now at its highest level since 2017.
Prices are now 11.1% higher nationally and 11.3% higher in the South West than they were in June 2020, due to high price inflation in the market over the years. first six months of 2021.
In the six months since January 2021, prices at the national level have increased in value by 7.9% on average.
The national DNG price gauge, which tracks residential property price movements nationally, excluding Dublin, shows that the average price of a house now stands at â¬ 233,582, up from â¬ 210,258 in June 2020 .
In the South West region, the average price of a property for resale now stands at â¬ 266,844 compared to â¬ 239,671 in June 2020.
The report also notes that at the regional level, the annual rate of price inflation during the year through June 2021 was highest in the Mid West (15.8%), the Midlands (11.4 %), the South-West (11.3%) but below the overall national level. average in the West (9.5%) and South-East (9.6%) (10.2%) and Middle East (10.6%) border regions.
The report highlights the fact that in the year up to December 2020, the annual rate of house price inflation was 1.4% nationwide.
However, strong demand, coupled with a scarcity of homes for sale in the market, helped push up residential property prices across the country in the first half of 2021.
In the first six months of the year, an acceleration in the rate of increase in house prices was triggered by the shortage of supply against a backdrop of rising disposable income, high savings levels and demographic pressures.
At the national level, an analysis of the housing stock currently for sale indicates that there are around 35% fewer homes currently listed for sale, compared to the same period last year, and 45% less than the same period in 2019.
In Dublin, inflation stands at 9.1% and the average price of a property for resale now stands at â¬ 482,617, its highest level since the first quarter of 2009.
However, the report notes that residential property prices in the capital are still 33% lower than their previous peak in 2006, but have effectively doubled (99%) from the market low in 2012.
DNG predicts that the current rate of price growth evident in the residential market will be a temporary phenomenon and will begin to slow down later in the year as pent-up demand is met and fewer exemptions from central bank macroprudential rules are made. available to buyers of lending institutions.
In addition, there is strong evidence that the number of homes put on the market is also increasing, albeit gradually, with DNG noting that education levels were 12% higher in Q2 compared to Q1 2021, and 152% prior to Q1 2021. Q2 2020.
Commenting on the numbers, DNG Research Director Paul Murgatroyd said:
âThe latest results from the DNG House Price and the National Price Gauges show that residential real estate inflation has accelerated markedly in recent months, mainly due to the increase in demand from first-time buyers given the levels record mortgage approvals.
Our analysis of buyers during the second quarter shows that first-time buyers continue to dominate the resale market accounting for 54% of purchases during the period.
In addition, more than two-thirds (70%) of buyers use mortgage financing to complete their transaction.
âThe high level of demand in the current market is now evident due to the easing of restrictions on the real estate industry and house hunters during the last foreclosure.
Buyers who had suspended their search for property during the foreclosure are now back in the market competing with buyers with more recent loan approvals. “
DNG CEO Keith Lowe added:
âPrices nationwide are increasing at a faster rate than in Dublin, however, prices outside the capital are increasing from a much lower base.
Covid 19 has been a game-changer for the housing market as it has been in most developed countries.
Buyers have more savings and are more focused on making life-changing decisions than they were before the pandemic.
In addition, a growing number of expats are also returning home and purchasing high-end properties, as many can now work remotely. “
âIn the new housing market, much of the construction industry remained closed during the most recent shutdown which impacted the supply of new housing, and the second-hand market, many older members of society have delayed their move while waiting for a full vaccination and the confidence to move forward. .
We have noticed that an increasing proportion of shoppers are now looking to buy in their home location rather than in Dublin, as the prevalence of remote working increases.
In addition, the demand for vacation homes has increased significantly since the start of the year, pushing up prices in these regions.