Dublin: The persistent surge in house prices prompts a call for action. An expert suggests that a potential remedy lies in augmenting the supply of new homes while simultaneously offering loans at lower interest rates. Associate Professor of Economics at Trinity College Dublin, Ronan Lyons, underscores the pressing need for more housing options despite a steady increase in construction. However, the escalating demand continues to outpace availability, exacerbated by a sluggish recovery in the second-hand market, primarily due to rising interest rates.
Recent data reveals a stark shortage, with the number of houses for sale plummeting to less than 10,500, marking the lowest figure since 2007 and representing a mere 40% of the inventory seen in 2019. Daft.e, a leading property website, emphasises the urgency of rectifying this imbalance by injecting more properties into the market and facilitating access to loans at reduced interest rates.
According to Daft.e, the average house price in Ireland stands at €326,469, reflecting a 5.8% increase from the previous year and a staggering 30% surge since the onset of the pandemic. Notably, Dublin experienced a 3.2% rise in house prices in the first quarter, while Leinster witnessed a 5% uptick.
The trend extends beyond Dublin, with Cork City witnessing a notable 7.3% increase and Galway City, Waterford, and Limerick City registering hikes of 9.4% and over 10%, respectively. Similarly, regions outside urban centres saw substantial spikes, with Munster recording a 10.9% surge and Connacht-Ulster witnessing a 6.7% increase in house prices, as reported by Daft.e.
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