House prices still resilient - IPAV

The annual rate of residential property price increases slowed nationally to a 22-month low of five per cent in February, compared to 6.1% in January.

Property prices in both Dublin and the rest of the country fell marginally last month for the second month in a row.

According to the Residential Property Price Index from the Central Statistics Office, prices in Dublin slowed to an annual increase of 3.2% while properties outside Dublin slowed to 6.4%. The region outside of Dublin that saw the largest rise in house prices was the Border (Cavan, Donegal, Leitrim, Monaghan, Sligo) at nine per cent. The details were published last Friday.

Responding to the latest data, the Institute of Professional Auctioneers & Valuers (IPAV) said overall there is little change, prices are remaining on the high side.

Pat Davitt, IPAV’s Chief Executive, said: “While there has been a month-on-month drop of 0.4pc, generally prices are very resilient and neither levelling off nor decreasing. This is evident in many areas seeing annual increases in the five per cent to nine per cent range."

Interest rate hikes

He continued: “Interest rate hikes are bound to impact the market and with the level of demand for properties the change will be between those who are at the margins and constrained by higher interest rates and how many purchasers can buy with either no mortgage or very little.”

Mr Davitt further pointed out that there is much pent up and growing demand for homes. He pointed to unpublished research by the Housing Commission set up by Minister for Housing, which puts that demand at up to 62,000 homes per year until 2050.

“What is somewhat worrying is the drop in the number of commencement notices, down to 1,997 in February, from 2,108 in January, and from 2327 in February 2022.

“It indicates that much remains to be done at policy level to arrest the housing crisis. In that regard, the Budget later in the year will be critical. New realistic and co-ordinated measures are badly needed,” said Mr Davitt.

“We need to see all strands of housing policy being co-ordinated by Government with the input of all stakeholders and we need to see housing policy being de-politicised," he concluded.