Welcome to Midlands Real Estate’s latest blog post, where we delve into the key findings from the House Price Report for Q2 2024. This comprehensive report provides an in-depth analysis of the current trends in the Irish residential sales market, highlighting the ongoing challenges and opportunities for buyers, sellers, and investors.
Overview of the Irish Housing Market
The Irish housing market has experienced significant fluctuations over the past decades. From the mid-2000s credit boom to the subsequent crash and the chronic housing shortages of the last decade, the market has been anything but stable. However, recent data suggests a mixed picture with both positive and challenging elements.
Housing Inflation Trends
In Q2 2024, housing inflation has shown a noticeable increase. After peaking at 13% in mid-2021 and cooling to 2.6% by mid-2023, inflation has risen again to 6.7% as of mid-2024. This uptick is largely due to the continued tightness in housing supply, particularly in the second-hand home market.
Supply and Demand Dynamics
The report highlights a significant reduction in the number of second-hand homes available for sale. From over 20,000 homes in early 2020, the number has dropped to below 11,000 in early 2022. Although there was a modest recovery with an increase to over 17,500 homes by late 2022, the supply has since declined again, contributing to upward pressure on prices.
Regional Price Variations
The report provides a detailed breakdown of house prices across different regions:
- Dublin: The capital continues to see strong demand with average prices rising by 2.5% between March and June 2024. The average listed price in Dublin is now 6.7% higher than a year ago, with some areas like South County and North County experiencing significant year-on-year increases of 6.4% and 6%, respectively.
- Leinster (excluding Dublin): Prices in Leinster saw a 3.4% increase in Q2 2024. Year-on-year inflation reached 6.1%, indicating a strong recovery from the near-zero inflation rates of late 2023.
- Munster: This region experienced the largest quarterly increase in prices at 5.2%, with annual inflation rising to 10.4%. Cities like Cork and Limerick are seeing robust price growth, reflecting strong demand.
- Connacht/Ulster: After a slight decline in Q1, prices in Connacht/Ulster rose by 5% in Q2. However, year-on-year inflation in this region has gradually decreased to 6.2%.
Market Heat and Transaction Prices
Across Ireland, the typical transaction price in Q2 2024 was 3.5% above the listed price, indicating a competitive market. In Dublin, the market heat is particularly intense, with transaction prices 5.7% above list prices. This trend is slightly down from 5.9% in Q2 2022 but up from 2.4% in the same period last year.
Factors Affecting Home Purchases
The report identifies several key factors influencing home purchase decisions:
- Lack of Supply: Over 60% of respondents cite the lack of homes as a significant factor delaying their purchase, though this is a slight improvement from 71% the previous year.
- Deposit Savings: Approximately half of the potential buyers state that saving for a deposit is a critical issue, with this being a larger concern in Dublin compared to other regions.
Future Outlook
Looking ahead, the trajectory of house prices will largely depend on the recovery of second-hand home supply and broader economic conditions. While new home construction has picked up, expected to reach between 35,000 and 40,000 units in 2024, the existing home market remains crucial for balancing supply and demand.
Conclusion
The Daft.ie House Price Report Q2 2024 provides valuable insights into the Irish housing market, highlighting ongoing challenges such as limited supply and rising prices. For buyers, sellers, and investors, staying informed and adapting to these trends is essential for making strategic decisions.
At Midlands Real Estate, we are committed to helping you navigate these complexities and achieve your property goals. Contact us today for personalized advice and the latest market insights.
For more detailed insights and regional analysis, visit the Daft.ie House Price Report Q2 2024 on their website.
