The prices of houses sold in Ireland jumped 12pc in Q1 in a year as inflation in the housing market nears Celtic Tiger levels, a new report from Valuemyhome has found.
This is due to five consecutive quarters of house price inflation, close to the six back-to-back inflationary quarters seen at the height of the Celtic Tiger in 2007.
The median house price has also risen by 12pc to €280,000 from €250k, the data technology company found in its first quarterly report.
“Since Q3 2020, the Irish housing market has witnessed five consecutive quarters of price inflation. The length of this price surge is now quite close to the heady days of 2006 - 2007 when rises were seen in six consecutive quarters,” Gareth McKeown, head of valuation at Geowox said.
Rural counties saw the most substantial increases in the average selling price of a house with Monaghan (39pc) the largest when compared to 2021.
The average house sold in Monaghan in the first three months of last year went for €133,000. This year, the figure rose to €185,000.
Carlow saw a rise from €155,000 to €210,000, a 36pc rise, while Offaly saw a jump from €170k-€227k (34pc) in the same period.
Dublin house prices are currently 41pc higher than the rest of the country, the report found, while Longford has the cheapest property market at 48pc below national average. New builds are also averaging 48pc more expensive to purchase compared to existing homes.
“With house prices continuing to rise, we are nearing Celtic Tiger price territory,” Mr McKeown said.
“The Central Banks' lending rules, in addition to the absence of mortgage interest relief, mean that borrowers now need higher incomes than during the property bubble years in order to qualify for a mortgage.
“A recent report drafted by the Banking and Payments Federation Ireland states that the typical household income of first-time buyers has risen to €77,000 per annum, far higher than during the property bubble years (€60k in 2005).
“Having regard to the above, factoring in a lack of supply, increasing costs in fuel and building commodities, and an uncertain global economy, house prices look certain to continue rising throughout the year and into 2023,” Mr McKeown said.
The number of homes sold remained relatively stagnant in the past year with just a 1pc uptick to 12,876 units in Q1 of this year. Dublin (3,925) and Cork (1,440) registered the largest total number of sales, while Westmeath (-27.3pc), Co. Wicklow (-21.4pc) and Cavan (-21.3pc) saw the most significant year on year unit sales drops. Half of the counties in Ireland recorded negative volume vs the same period in 2021 with Offaly the county with the highest growth year on year (+27pc).
The report chimed a warning that new home delivery fell year on year when compared to last year amid a supply shortage.
“We do not see the supply of new homes solving pricing pressures. By Q1 2022, new home deliveries were in fact down -3pc year over year,” the report stated.