The CSO’s latest data indicates property prices nationally grew at an annual rate of 13 per cent in JulyA pattern of deceleration in house prices is now clearly evident. Headline inflation appears to have hit a cycle high point of 15.1 per cent in February and March before falling to 14.5 per cent in April, 14.1 per cent in May and 14 per cent in June, with the latest figures for July pointing to a year-on-year increase of 13 per cent.
The modest decline in price growth is mostly linked to cost-of-living issues and higher interest rates. Anecdotally estate agents are reporting longer sale closing times. It’s not much to hang your hat on if you’re a prospective buyer. Prices are still rolling forward and average or median prices remain a steep multiple of average incomes.
Nonetheless we can detect the end of the pandemic element in the market when prices were fuelled by factors such as increased savings and remote working and the beginning of a new cost-of-living/higher interest rates phase with demand dampening as a result.