The latest report from Daft.ie released this morning shows that house price inflation eased in the third quarter in Ireland but remained at high levels. The ongoing low level of available stock suggests that prices will continue to track higher in the coming quarters.
Asking prices grew by 9.1% year on year in the third quarter, down from 13.2% in the second quarter. The fall in the annual rate of inflation mainly reflects strong base effects in the third quarter of 2020, when there was the largest three month increase in the series.
Greater price growth is being seen outside the cities (+13%), with asking prices in Dublin growing by 5% year on year in the third quarter. Given the current supply/demand imbalance, Goodbody Stockbrokers say it is likely that transacted prices are even higher than asking prices.
Despite a slight improvement in the number of properties coming to the market, the stock of homes for sale across the country (12,675) remains exceptionally low, standing at 50% of the pre-COVID 2019 level. Along with a large stock of mortgage approvals outstanding, Goodbody Stockbrokers say this should put further upward pressure on prices in the short-term, pointing to upside risks to Goodbody's price inflation forecast.