Updated: Feb 16
Mark Solon, managing director of Symmetry Financial, recently spoke with The Smart Money Series about the state of property in Ireland and what buyers should know heading into the rest of 2022.
Property in early 2022: What we know so far
Yes, prices are still going up.
Average home prices in Ireland were just over €291,000 in early 2022, an increase of 7.7% from 2021. While today the CSO released figures that shows Dublin property prices rapidly increasing and the average house price topping €500k.
Remote work seems to be affecting home prices across the country as people move away from city centres in favour of larger homes that are practical for both living and working.
For instance, home prices increased 19.2% in Leitrim and 7.5% in Waterford, on average. Meanwhile, property prices increased 1.2% in South County Dublin.
Renters continue to feel the effects of Ireland’s limited housing supply
Buyers unfortunately aren’t the only ones who can expect to face challenges in the property market this year.
Ireland’s rent prices have been on the rise for the last 25 years, increasing 6.8% in the last year alone.
More rental properties will need to come to the market before renters can hope to see some relief, but Solon doesn’t see an end to the country’s ongoing housing shortage any time soon.
What Irish home buyers should know in 2022
Looking ahead to the rest of the year, Ireland’s ongoing housing supply shortage and the national help-to-buy programs will continue shaping the way buyers navigate the property market.
Home prices in the competitive €300k-450k price bracket are expected to continue their rise due in part to the government’s help-to-buy schemes, which are designed to help buyers get financing through the government.
The higher end of the property market, however, is expected to stabilise as demand cools.
Tip for buyers in 2022: Take advantage of government loans
Ireland’s Local Authority Home Loan, previously called rebuilding Ireland home loans, helps individuals who cannot secure loans from mainstream banks. However, it’s hard to say how much longer the Local Authority Home Loan program will continue.
The Irish Central Bank has also approved the first home shared equity scheme, but Solon is skeptical as to how much it will help the average home buyer. A similar program introduced in the UK seems to have increased home prices, which will not bode well in Ireland’s already pricey market.
Ireland needs to focus on housing supply in 2022
Financing schemes aside, Ireland needs to bolster its supply of properties on the market before buyers can expect to see real relief.
However, the number of available properties remains frustratingly low in early 2022. The tight supply is inflating prices and making it harder for new buyers to navigate the competitive market.
New builds are mostly popping up in commuter counties where demand is highest, but Ireland’s overall supply of homes remains weaker than expected, The Irish Examiner reported.
In fact, data show that new builds were down 18% in Dublin, and builds were up 36% in commuter counties.
Of course, building more homes is easier said than done*.
Buyers considering purchasing property in 2022 should explore government-backed loans, sourcing the best value mortgage by working with an experienced property professional and getting the best value on items such as mortgage protection insurance and home surveys.
Contact Mark at Symmetry Financial Management to learn more
The Irish Times looks at this problem and seven possible solutions here.