Property prices at record 1% above Celtic Tiger peak, says CSO

LATEST CSO figures suggest that the housing market may be taking a turn, as the rate that property prices are rising in Cork and nationally is beginning to slow down.

In July of this year, the Residential Property Price Index (RPPI) reached its highest ever value since records began, at 164.9 points, or just shy of 1% above peak Celtic Tiger levels of 2007.

However July’s RPPI statistics, released by the CSO yesterday, show that while house prices are still on the rise, the rate of inflation may be losing steam.

The national RPPI increased by 13% in the 12 months to July 2022, down from an increase of 14.1% recorded in June, and the 15.1% increase recorded earlier this year in March.

Regional price inflation is also indicating a slowdown, as the South West Region (Cork and Kerry) recorded an increase of 12.9% in house prices in the 12 months to July 2022.

This is down from a 14.1% increase in June, and an 18% increase recorded in May.

The median price of a home in Ireland is still moving closer to the €300,000 mark, as the average cost of a dwelling purchased in the 12 months to July 2022 was €295,000 - up from €290,000 in June.

Levelling off

However, in Cork, the rising median price of a home may have leveled off.

In July the median price of a home in Cork county was €290,000, which hasn’t increased since May. In Cork city, the median price of €285,000 for a home in July remains the same price as in June.

The most expensive Eircode in Cork, and the third most expensive in the country outside of Dublin, is still Kinsale, with a median house price in July that remains at €400,000.

Other pricey areas include Carrigaline, Cork Southside, Ballincollig, Carrignavar, and Glanmire, where the average home buyer still needs at least €325,000 to purchase a house. Most median house prices in different Cork postcodes are still on the increase as of July 2022.

There are still only three areas in Cork where the average house costs less than €200,000.

In Mallow, the median house price in the year up to June 2022 was €195,000, which had risen to €198,000 in July – while in Charleville the average price of a home has risen to €166,000 in July, up from €162,500 recorded in June. Bantry saw a slight fall in the average house price in July 2022, down to €184,000 from the €185,000 recorded in June.