Asking prices for homes up 7%, report finds

Muireann Duffy

The asking prices of homes increased by 7.3 per cent in the second quarter of the year nationally, according to a new report.

MyHome.ie's latest property report found asking prices rose at the fastest rate in almost two years in Q2, with the median asking price nationally reaching €365,000, up 5.1 per cent on the first quarter of the year.

In Dublin, asking prices shot up by 7.2 per cent in the year, to hit a median of €465,000, while prices outside of Dublin rose to a mid-point of €310,000, up 7.6 per cent annually.

By quarter, asking prices increased by 3.3 per cent in the capital and 6.7 per cent outside of Dublin from Q1 to Q2.

Taking three-bed semi-detached properties around the country, the report found the largest annual increases in asking prices were noted in Kildare (14.3 per cent), Westmeath (11.9 per cent), Roscommon (10.8 per cent) and Limerick (10.6 per cent).

The research pointed to the strength of the labour market and the loosening of mortgage lending rules as factors contributing to the upward trend in asking prices.

The report noted average earnings in Q1 stood at €50,300, up 4.7 per cent annually, while the average mortgage approval value rose by 4.6 per cent in the year to April.

Additionally, the volume of first-time buyers with a mortgage value of 3.5 to 4 times their income has jumped from 6 per cent in 2022 to 36 per cent last year.

The report added the "continual poor supply of properties", illustrated by the 11 per cent reduction in the number of properties listed on the property website compared to last year, also served to drive up prices.

MyHome.ie added that in May, the median selling price of homes was 6 per cent over the asking price, up from 1 per cent last year.