Ireland May home prices rise 7.9% year-on-year

Ireland May home prices rise 7.9% year-on-year

Ireland's housing market has shown significant growth in the past year, with home prices rising by an average of 7.9% year-on-year, according to a recent quarterly analysis by property site MyHome.ie and Bank of Ireland [1]. The report highlights that while Dublin's asking prices have increased by 5.1%, the rest of the country has seen a more substantial rise of 7.9%.

The average mortgage approved in May was €337,000, marking an annual increase of 6.7%. This upward trend is attributed to several factors, including the relaxation of Central Bank mortgage lending rules. In 2024, the average first-time buyer borrowed 3.4 times their income, up from a 3.2x multiple in 2022. This change has pushed up house prices by €15,000 to €20,000 [1].

Conall Mac Coille, chief economist at Bank of Ireland, notes that uncertainty following President Trump's announcement of 'Liberation Day' tariffs has not significantly impacted Ireland's housing market. He expects a modest increase in the number of homes completed this year, although it will still fall short of the required 50-60,000 units [1].

The average residential property is now selling for 7.5% above its initial asking price, indicating a robust market. Investors and financial professionals should closely monitor these trends, as they suggest a continued upward trajectory in Ireland's housing market.

References:
[1] https://theliberal.ie/people-are-forced-to-live-at-home-property-asking-prices-are-climbing-by-7-each-year/