Housing price inflation increased by 8.2% in the 12 months to May 2024
Kenneth Fox
The Residential Property Price Index (RPPI) increased by 8.2 per cent in the 12 months to May 2024, with prices in Dublin rising by 8.6 per cent and prices outside Dublin up by 7.8 per cent.
In May 2024, 3,997 dwelling purchases by households at market prices were filed with the Revenue Commissioners, down by 9.9 per cent when compared with the 4,435 purchases in May 2023.
The median price of a dwelling purchased in the 12 months to May 2024 was €335,000.
The lowest median price for a dwelling in the 12 months to May 2024 was €169,500 in Longford, while the highest median price was €626,000 in Dún Laoghaire-Rathdown.
In the 12 months to May 2024, house prices in Dublin rose by 9.2 per cent while apartment prices increased by 6.6 per cent.
The highest house price growth in Dublin was in Dublin City at 10.6 per cent, while Dún Laoghaire-Rathdown saw a rise of 7.7 per cent.
Outside Dublin, house prices were up by 7.6 per cent and apartment prices increased by 9.9 per cent.
The region outside of Dublin that saw the largest rise in house prices was the Mid-West (Clare, Limerick, and Tipperary) at 11.2per cent, while at the other end of the scale, the Mid-East (Kildare, Louth, Meath, and Wicklow) saw a 6.0 per cent rise.
In May 2024, 3,997 dwelling purchases by households at market prices were filed with the Revenue Commissioners, a decrease of 9.9 per cent when compared with the 4,435 purchases in May 2023.
Households paid a median or mid-point price of €335,000 for a residential property in the 12 months to May 2024. The lowest median price paid for a dwelling was €169,500 in Longford, while the highest was €626,000 in Dún Laoghaire-Rathdown.
The most expensive Eircode area over the 12 months to May 2024 was 'Dublin 6' with a median price of €740,000, while F45 'Castlerea' had the least expensive price of €137,500.”
Speaking about the news, Trevor Grant, chairperson of Irish Mortgage Advisors (IMA) said: “House price growth continues to accelerate in Ireland – with this morning’s figures marking the ninth consecutive month of annual house price growth.
"This will be a huge disappointment to the many prospective first-time buyers who are constantly finding themselves unable to reach the point where they can finally buy a home.
"The mismatch between housing supply and demand is one of the main reasons for the continued pick-up in house price growth.”
“Up to 53,000 new homes are needed in Ireland per year to cater for population growth, according to a report published by the ESRI earlier this month.
"Current Government house building targets are well below that and while the Taoiseach Simon Harris has said the Government would use the ESRI data to help it set new housing targets this autumn, given a general election has also been mooted for autumn too, house hunters will be hoping the Government delivers on any new ambitious housing targets it sets – rather than simply making election promises it reneges on.
Although housing supply is increasing, approximately only one-third of these new properties will be made available to private purchasers.
This lack of supply combined with the continued high level of demand and potentially falling interest rates is likely to add to house price inflation.
Mr Grant said, "Against this backdrop, it is imperative that all prospective buyers do their utmost to secure the best mortgage deal.
"First-time buyers must stay proactive by ensuring they have the necessary deposit in the wings, preparing all the required documentation they will need for a mortgage application and exploring any State house purchase support schemes they may be eligible for.
"Market-based advice from a mortgage broker is essential in order to understand all of your options as whilst your own bank may offer you the best terms available for you, they are not obliged to tell you about better terms which exist elsewhere.”
