National house price inflation has surged to over 6%, the fastest pace in almost three years, according to the latest house price report from MyHome.ie. 

The report, which is published in association with Davy, found that annual asking price inflation rose by 6.3% nationwide, by 4.8% in Dublin and by 7.2% elsewhere around the country. MyHome.ie say this data confounds warnings sounded earlier in 2020 that the housing market could see ‘double-digit’ price declines.

According to the report, this is due to a number of factors:

• Prospective home-buyers have largely been insulated from job losses
 • Government supports have protected incomes, removing the risk of forced selling
 • Mortgage lending hit a new cycle high of €1.1bn in October
 • Housing supply issues have become more acute

Meanwhile, after significant increases in third quarter, quarterly asking price inflation has tapered off – rising by 0.6% nationally, by 1.6% in Dublin, and by 0.6% elsewhere around the country.

This means the mix-adjusted asking price for new sales nationally is €284,000, while the price in Dublin is €392,000 and elsewhere around the country it is €238,000. Newly listed properties are seen as the most reliable indicator of future price movements.

Commenting on the report, Managing Director of MyHome.ie, Angela Keegan said, "The property market mirrors the overall economy, and we are in a much better place now than we may have expected to be early in 2020 when the virus emerged. Government Covid-19 supports, increased mortgage lending, and the concentration of job losses among mostly lower-paid workers have ensured the property market has remained buoyant, while the ongoing issue of supply has exacerbated demand leading to a rise in house price inflation."

Source: www.businessworld.ie