Tuesday 24 April 2018

Lack of new homes sees prices rocket across the board

Ireland's builders need to respond to increased demand and provide the right kind of properties, writes Ronan Lyons

(Stock photo)
(Stock photo)

Ronan Lyons

The figures in this latest Daft.ie Sales Report are unlikely to surprise many who have an interest in the housing market. Comparing prices in the first three months of 2018 with those in the final three months of 2017, they rose in 53 of the 54 markets covered in the report, with only Monaghan recording a slight fall. Compared with prices a year ago, only Donegal has seen a fall.

It is, in other words, a market that continues to see almost across-the-board strong increases in prices.

Looking at the national average, the annual rate of inflation was 7.3pc in the first quarter of the year. The optimist will point out that this is the slowest rate of inflation in almost two years. However, in a healthy housing system, housing prices increase at the same rate as prices in the rest of the economy, no faster.

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