Property Prices - May 2024

irelandhouse.ie

Ireland House Sale Statz show overall Irish property sale prices at an average €349k for the month of May 2024, a 0.58% increase from the previous month of April. Property selling volume for the month of May consisted of 3,664 pre-owned sales and 844 new build sales. This brings the total new build sales this year to a figure of 3,539 which is approximately 12% fewer new build sales than this time last year.

1 year average sales prices for May show Leitrim once again with a sharp rise in property prices amounting to an increase of 1.58%, which now takes average property sale prices in the county to €193k. The highest rise was recorded in Westmeath which seen 1 year average property prices increase by 1.85%.

combat14

great article on CB mortgage lending limits will they decrease again with falling interest rates....

Surging prices are a reminder the Central Bank was never trying to make housing more affordable

https://www.thejournal.ie/paul-odonoghue-central-bank-house-prices-6416893-Jun2024/

SharkMX

https://www.boards.ie/discussion/comment/122296005#Comment_122296005

Thats not a great article. I think its probably written by a 5 year old tbh.

Wanderer78

…you gotta love financialisation, where everyones a winner!

combat14

looks like the property market is now red hot on fire with renters absolutely desperate to buy paying 20-30k above asking prices as their leases expire - the shortage of accommodation in the state at present is simply dire ... whether this will change as FFG and Greens launch their massive building campaign remains to be seen for now renters who have been screwed by landlords are being doubly screwed when buying their homes

three-bed semis in Offaly for example recorded a 9% €20,000 QUATERLY increase to €240,000, with REA Hynes noting a quick turnaround of properties which are exceeding asking prices.

Prices in Limerick increased by an average of €10,000 in the quarter, exceeding the €300,000 barrier for the first time, with nearly every property getting into a bidding situation, according to local agents REA Dooley.

https://m.independent.ie/irish-news/panicked-renters-paying-30000-above-asking-prices-in-scramble-for-housing-as-landlords-sell-up/a786141994.html

Wanderer78

https://www.boards.ie/discussion/comment/122296533#Comment_122296533

…its not gonna change, it ll be interesting to see who we ll blame after the foreigners…..

…we ll still be experiencing a crisis after the next government, its indefinite now…..

BlueSkyDreams

https://www.boards.ie/discussion/comment/122296533#Comment_122296533

What is driving the sell off by landlords? There are lots of new rental properties hitting the market now, especially in Dublin.

Is it a fear that rental prices for older stock will decrease?

DubCount

https://www.boards.ie/discussion/comment/122298976#Comment_122298976

Most new supply is coming from larger Landlords in Multi-Unit Rentals. This is welcome and enough to slow rental inflation, but not enough to stop it. Price reduction fear has nothing to do with the landlord sell off. RPZs, increasing compliance burdens, risks of eviction bans etc., increasing interest rates - take your pick.

BlueSkyDreams

https://www.boards.ie/discussion/comment/122299359#Comment_122299359

True, but none of those things are new and interest rates are likley to decrease through the year.

I wouldnt have thought any of those aspects have spiked in recent months, at least not to the point where they would trigger a big increase in landlords exiting the market.

Unless there is some other new landlord restriction the govt are bringing in?

A fear of a potential SF govt, perhaps?

DubCount

https://www.boards.ie/discussion/comment/122300293#Comment_122300293

New landlord restrictions are always possible, and a SF Government would likely add more restrictions. With an election this winter, what odds for another winter eviction ban this year?

RTB stats dont suggest an increase in LLs leaving the market - its more of a constant flow. None of the things I mentioned are new, but none have been addressed either. As sitting tenants move on, or as LL individual circumstances change, the outward flow continues, and the only replacement is multi-unit rentals. Thats fine if you want to rent in central Dublin, not so great if you're looking for a rental in Tralee or Sligo where corporate LLs are not interested in providing supply.

Wanderer78

…theres not gonna be a sf government, we re stuck with indefinite ffg governments, as theyll do their utmost to keep it that way, property owners have little or nothing to be worrying about…

BlueSkyDreams

https://www.boards.ie/discussion/comment/122300494#Comment_122300494

Good points about rentals outside of Dublin. They are going to dry up like a desert because new, large scale apartment stock, is just not viable in those locations.

I dont see another winter eviction. The govt got burnt by the predicatble fall out last time. They wont fall for that again and give SF a rod to beat them with when the ban ends.

If SF were to get into power by the winter however, an eviction ban is incoming and an even bigger reduction of rental properties will ensue as a result.

SharkMX

https://www.boards.ie/discussion/comment/122308308#Comment_122308308

It doesnt have to be evictions though that cause a decrease in rural rentals. As time goes by tenants will leave or move. Landlords then have the opportunity for a hassle free sale process and i think most will take it.

All of the people I know who rented their houses have sold now. For a few years now they have been waiting for the houses to be vacant to sell them. I dont know anyone else now who has an investment property. I dont know anyone who is planning to get into investment either.

I think that as tenants leave now, single or low number unit landlords are just selling up instead of letting again.

You are going to see the supply of houses in the country for rent dwindle I think. In Dublin perhaps new apartments or estates built by REITS might help, but I just see rentals in the country dwindling as tenants leave them. I dont think most of them will ever be rented out again once the current tenant is gone.

arctictree

https://www.boards.ie/discussion/comment/122308829#Comment_122308829

That's a dim outlook for the rental market. The Government have really screwed renters over the years but they make it look like the opposite!

BlueSkyDreams

https://www.boards.ie/discussion/comment/122308829#Comment_122308829

Yep. And there isnt sufficient development in those rural areas to offset the stock that exits the market.

Will add upwards pressure to the small pool of rentals that do carry on.

Sierra Oscar

https://www.boards.ie/discussion/comment/122298976#Comment_122298976

I'd say there are plenty of landlords who bought properties in the 90's / 00's who are now moving on in age and are just looking to get out of it.

There haven't been as many people purchasing buy-to-lets over the last decade so the number of small time landlords is naturally going to decrease over time.

Families who are inheriting rental properties are also more likely to have to sell to settle probate.

Icepick

https://www.boards.ie/discussion/comment/122298976#Comment_122298976

High property prices lower yields while the stock market pays more and even safer investments pay the same beecause of high interest rates in addition to hassle of renting and LLs getting older.

Claw Hammer

https://www.boards.ie/discussion/comment/122310068#Comment_122310068

There are 2 sides to this. Finance for buy to lets has been scarce since 2008. The vast majority of OUL's (One -unit landlords) both before that. On a purely demographic basis they are now at least 16 years older that they were at the time they bought the property. Many are now of pension age or approaching pension age. The second factor is that there has not been a corresponding influx of replacement landlords. Younger people can't get a first house let alone a second. For people with one house, trying to get another on buy to let is difficult. Unlike 20 years ago there are no banks will to lend and multiple building schemes happy to sell units to them. There are far mor going out than going in.
That is those leaving for demographic reasons. The RTB and its behaviour has driven others out.