The latest official figures from the Central Statistics Office (CSO) published yesterday show that Irish housing trends continued to improve towards the end of 2020.
Prices nationally rose by 0.4% month on month in November with the annual rate of growth moving into modest positive territory (0.1%) for the first time since May 2020. Prices fell slightly in Dublin (-0.9% yoy) and rose modestly outside Dublin (+1.2% yoy).
However, a positive trend was evident across the country coming into the end of the year, with annualised growth in the three months to end-November at +5%. Alongside relatively robust demand (including a surge in mortgage approvals), the supply of properties for sale is now at all-time lows, thus putting upward pressure on prices.
November saw the first annual increase in housing transactions since before the pandemic. Transactions rose by 7% yoy in November, led by the existing homes market (+11% yoy). Transactions of new homes fell by 6% yoy, but this was the smallest annual decline since March 2021. Importantly, this trend was evident for both households and non-households.
According to Goodbody Stockbrokers, "Although the official housing data can be lagging, more recent information on mortgage approvals, asking prices and stock suggest that these positive trends continued into December. With the current lockdown, construction sites are largely closed, and viewings are not permitted. Weaker trends are thus likely at the start of 2021, but the evidence of 2020 suggests that demand for housing remains strong nonetheless, due to lifestyle and financial reasons."