House prices ‘set to rise’ despite slowdown in market

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Pressure on home prices will continue until there is ‘a substantial increase in supply’, says BPFI via IrishTimesBiz

The BPFI, which is the main industry group for the banking sector, also pointed to the slowdown in new home building, as developers grapple with rising input costs, as reason to expect demand to continue to outstrip supply. Construction started on 6,770 new homes in the three months to the end of September, down 22 per cent compared with a year ago, the group said.

While house prices have increased only slightly ahead of the EU average in recent years, typical rents in Ireland have jumped 82 per cent since 2010, according to EU data. That compares with about 18 per cent across the bloc. “While in the short-term mortgage demand may be impacted by the cost-of-living crisis and general economic uncertainty, this may well be offset by factors such as pent-up demand and high rental costs which will sustain home buying demand into the future resulting in price pressures, albeit at a lower level, unless supply increases substantially,” Mr Hayes said.

Met Éireann has issued a weather advisory until December 12th, with “very cold” weather expected from Wednesday night.

 

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