A new report from Daft.ie shows that prices rose nationwide by 5% in the third quarter and are up by a similar amount on an annual basis. The trends are common across the country with 44 of the areas reported upon by Daft.ie reporting annual price gains.
Price growth is stronger outside the capital but the differences are small. Prices are up by 2% year on year (yoy) in Dublin. Goodbody Stockbrokers say house prices continue to surprise to the upside in Ireland, reflecting the unique nature of this economic downturn and ongoing falls in the supply of homes available.
In the context of an official unemployment rate in the double-digits, Goodbody the bounce in prices is very unusual but reflects two factors. Firstly, those most likely to be home purchasers have not been affected much by the COVID-19 recession, with savings rising and working from home bringing a renewed focus on space. Secondly, the stock for sale continues to fall and hit its lowest level since 2006 in third quarter.
According to Goodbody Stockbrokers, "At the start of the pandemic, we estimated that prices would fall because of the expected weakness in demand stemming from the increase in unemployment. While the unemployment has occurred, prices have remained resilient. Significant government support for workers and firms have played a major role here and risks remain into 2021. There may be thus some delayed impact on the housing market, but for now, prices remain solid."