Property prices slow as industry insists market will not see reversal

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Strong demand combined with supply shortages will keep upward pressure on prices but higher interest rates will contrain buyers via IrishTimesBiz

Strong demand combined with supply shortages will keep upward pressure on prices but higher interest rates will constrain buyersWhile house prices are falling in the UK, Canada, New Zealand, South Korea and other countries, prices here are still rising in annual termsThe surge in house prices seen during the pandemic was, believe or not, less pronounced here than in other jurisdictions, a reflection of the Central Bank of Ireland’s strict lending rules, which appear to be moderating the ups and...

The slowdown/reversal cycle that seems to be engulfing property markets internationally sending prices the other way is similarly less pronounced here, so far anyway. So while prices are falling in the UK, Canada, New Zealand, South Korea and other countries, prices here are still rising in annual terms.

Officially they were up 6.1 per cent in January. But there’s quite a lag between what’s happening now and the official figures, which are based on transactions that took place months ago. We had two sets of figures on house prices published in recent days pointing to a softening in price growth on the back of higher borrowing costs and wider inflationary pressures. The latest quarterly monitor from

, which is owned by The Irish Times, indicated that asking prices for homes fell 0.3 per cent in the first quarter of 2023. They remained 3.2 per cent higher year-on-year, however.

 

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