Residential property prices in Ireland have surged nearly 10% higher than their peak during the property boom in April 2007, according to the latest figures from the Central Statistics Office (CSO).

Dublin vs. the Rest of Ireland
While Dublin property prices remain 1.8% below the February 2007 peak, the rest of Ireland has seen residential prices climb 10.2% above that peak. The overall residential property prices in Ireland increased at the fastest annual pace in nearly a year and a half, showing a growth of 7.9% compared to 7.4% the previous month.

Demand and Housing Supply Dynamics
Despite higher mortgage interest rates, housing demand remains strong, largely due to insufficient growth in housing supply. This imbalance continues to drive up property prices. The CSO reported an annual increase of 8.3% in Dublin property prices, while prices outside Dublin rose by 7.6% compared to the previous year.

Breakdown of Price Increases
In the 12 months leading to April, house prices in Dublin saw an 8.8% increase, with apartment prices rising by 6.2%. South Dublin experienced the highest house price growth at 10.5%, while Fingal saw a 7.1% rise.

Outside Dublin, house prices increased by 7.3% and apartment prices by 10.3%. The Mid-West region, including Clare, Limerick, and Tipperary, recorded the highest growth at 9.7%. Conversely, the Border region, encompassing Cavan, Donegal, Leitrim, Monaghan, and Sligo, saw the smallest rise at 5.4%.

Median Property Prices
The CSO reported that the median price for a residential property in the 12 months to April was €335,000. Longford had the lowest median price at €169,000, while Dún Laoghaire-Rathdown had the highest at €624,999. The most expensive Eircode area was A94 “Blackrock” with a median price of €720,000, while the least expensive was F45 “Castlerea” at €133,000.

Home Purchases and Market Trends
A total of 3,572 home purchases at market prices were filed with the Revenue Commissioners, marking a 9.5% increase compared to 3,262 purchases the same month last year. Nationally, property prices have soared by 144.3% since their lowest point in early 2013. Dublin’s residential property prices have increased by 143.3% from their February 2012 low, while the rest of the country has seen a 153.7% rise since May 2013.

Market Predictions
Davy Stockbrokers forecasts a 7.5% growth in property prices this year, driven by a limited increase in transactions. Trevor Grant, chairperson of Irish Mortgage Advisors, noted that despite increased housing supply, prices continue to rise. He highlighted that many first-time buyers, who constitute the largest group of buyers, may be disheartened by persistent house price inflation.

Challenges and Future Outlook
Grant pointed out that a significant portion of new properties will not be available to private purchasers, exacerbating the supply-demand imbalance. This shortage, coupled with high demand and potentially falling interest rates, is likely to further fuel house price inflation. He also mentioned that the ESRI found that the average loan-to-income ratio in the Irish mortgage market is now comparable to the peak of the Celtic Tiger boom.

The recent ECB rate cut could attract more buyers into the market, potentially driving property prices even higher.

For those looking to navigate the dynamic property market in Limerick, Rowan Fitzgerald Auctioneers offer expert guidance and services to help buyers and sellers achieve their real estate goals. Contact us today to learn more about how we can assist you in the current market environment.