Prices for HOUSES in Mayo in the last three months of 2021 were 19% higher than a year earlier, compared to a 6% increase seen a year ago.
The average price for a home is now € 186,000, 67% above its lowest point.
National house prices rose 7.7% on average in 2021, according to the latest Daft.ie sales report released today by Ireland’s largest real estate website, Daft.ie. The nationwide average price in the last quarter of 2021 was € 290,998, up 0.6% from the third quarter of 2021 and just 21% below the Celtic Tiger peak.
While 2020 saw similar inflation rates in the Irish housing market, significant regional differences emerged over the year.
The smallest increases were recorded in urban areas. In Galway City, prices rose 1.6% over the year, while in Dublin prices rose 3.4%. In Cork City, prices rose 5.5% while in Limerick and Waterford cities the increases were 6.4% and 7.5% respectively.
But outside the five main cities, prices rose on average by 11.5% during 2021. The increase in Munster (outside the cities) was 9.2%, while in Leinster, outside Dublin. , prices rose 11.9%. The largest price increase in the country was seen in Connacht-Ulster, where prices rose 14.6% in 2021.
Fewer than 11,500 homes were listed on December 1, the lowest total since July 2006, when online advertising was still emerging. This represents a decrease of one quarter over a year.
The total number of listings for properties for sale in the year up to December 1 was just over 54,000, the highest 12-month total since early 2020. Although supply has held up improved, it remains well below pre-pandemic levels – with nearly 70,000 homes listed for sale in 2019.
Commenting on the report, its author, Ronan Lyons, an economist at Trinity College Dublin, said: “List price inflation continues to cool from its mid-year peak. Nevertheless, at nearly 8% over the year, it remains stubbornly high. This reflects the combination of exceptionally high demand and still low supply.
“The demand for homes to buy, which had been strong anyway since the mid-2010s, received an unexpected boost during the Covid-19 pandemic, with potential buyers being able to tap into ‘accidental’ savings as expenses decreased during closings.
“Meanwhile, the supply of new and used products remains weaker than expected before the pandemic. While the pandemic has altered some details, the overall health of the housing market is largely unchanged – characterized by low supply in the face of high demand. For this reason, an additional supply – not only of homes for sale but also of market rental and social housing – remains essential to address the chronic housing shortage in Ireland.