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National house price inflation is now at its highest level in more than three years, a new report shows.<\/p>\nNational house price inflation is now at its highest level in more than three years, a new report shows.<\/p>\n
According to the latest house price report from MyHome.ie, asking price inflation rose by 5.2% nationally in the third quarter of this year, the highest figure since the first quarter of 2017 when it stood at 5.5%.<\/p>\n
The report, published in association with Davy, also found that asking price inflation year-on-year increased by 5.1% nationwide.<\/p>\n
The mix-adjusted asking price for newly-listed properties nationally now stands at 282,000 euro, while the price in Dublin is 386,000 euro and elsewhere around the country it is 236,000 euro.<\/p>\n
The author of the report, Conall MacCoille, chief economist at Davy, said that despite the significant increase, \u201cwe were not likely to be facing another property bubble\u201d.<\/p>\n
\u201cThe news that asking price inflation bounced back to 5% in Q3 2020 could at face value be taken as a sign of a fresh bubble emerging in the Irish housing market,\u201d he said.<\/p>\n
\u201cHowever, we would caution that Covid-19 has disrupted the usual seasonal pattern of the housing market and may have flattered the annual comparison.<\/p>\n
\u201cJust as we thought the -3% inflation reading in Q2 2020 was an aberration, the same is likely true for the +5% recorded here. The truth probably lies close to the middle of these two readings.<\/p>\n
\u201cThe third quarter is normally a weak one for pricing, capturing the end of the summer selling season \u2013 which has been delayed this year. Hence, asking price inflation will likely fall back in Q4.\u201d<\/p>\n
Angela Keegan, managing director of MyHome.ie, said that strong demand and weak supply caused by the suspension of construction at the height of the lockdown were driving the inflation rate.<\/p>\n
\u201cMyHome.ie recorded its busiest ever month for website traffic in July, while our latest consumer sentiment survey conducted in August showed that 71% of prospective buyers expected to buy in the next year,\u201d she said.<\/p>\n
\u201cThis shows that buyers appear to have largely been unaffected by Covid-19\u2019s economic impact. On the supply side, meanwhile, stock levels are down 25% compared with this time last year. This combination has led to asking prices being driven upwards.\u201d<\/p>\n