07 Aug 2022

Latest report reveals house price rises in Limerick city and county

Latest report reveals house price rises in Limerick city and county

NATIONAL housing prices rose by 3.8% on average between March and June 2022 - the largest three-month gain in nearly two years - according to the latest report.

The average listed price nationwide in the second quarter of 2022 was €311,874, up 9.5% on the same period in 2021. It is just 16% below the Celtic Tiger peak.

In Limerick city, prices in the second quarter of 2022 were 11% higher than a year previously, compared to a rise of 16% seen a year ago. The average price of a home is now €250,000, 111% above its lowest point. 

In the rest of Limerick, prices in the second quarter of 2022 were 9% higher than a year previously, compared to a rise of 19% seen a year ago. The average price of a home is now €236,000, 79% above its lowest point.

The rural-urban gap in housing inflation continues to narrow, although rural areas are still seeing the largest increases. Outside the cities, prices rose by 11.4% in the year to June, down from a peak rate of inflation of 16.8% a year ago.

In Dublin, the year-on-year change in prices was 6.6%, compared to just 3.4% at the end of 2021. The other cities have seen larger increases in prices in the same period, however: in Cork, prices were 9.4% higher than a year previously, while in Limerick city, prices were up 11.1%. The biggest increases in urban housing prices were in Galway (13%) and Waterford cities (13.5%).

The number of homes available to buy on June 21 stood at just over 12,400, up from an all-time low of just 10,000 three months earlier. There are now slightly more homes available to buy in Ireland than a year ago, the first time since mid-2019 that this has been the case. As in 2019, improved availability is being driven by Dublin (where stock for sale is up 4.5% year-on-year) and the rest of Leinster (where it is up 10.8%).

Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, said: "Ireland’s housing market has been characterised for a number of years by strong demand, boosted recently by unexpected savings, but supply that has been steadily weakening.

"There are some signs that both sides of the market may be turning. On the supply side, the number of homes listed over the last twelve months has increased by 30% since early 2021, although it still remains 15% below the peak in 2019, while construction of new homes is set to reach a post-Celtic Tiger high this year." 

On the demand side, Mr Lyons said the rise in interest rates, prompted by inflation, will feed through to housing demand in due course.

"At the same time, sentiment among those active in the housing market has eased back, with expected inflation in housing prices over the next year below 1%, compared to over 5% three months ago. Expected inflation is one of the key drivers of immediate housing demand, so if prospective buyers feel they have more time to choose, they may take that opportunity," said Mr Lyons
Average list price and year-on-year change – major cities, Q2 2022 

Dublin city: €429,384 – up 6.6%
Cork city: €330,871 – up 9.4%
Galway city: €352,605 – up 13.0%
Limerick city: €250,421 – up 11.1%
Waterford city: €226,635 – up 13.5%
Rest of the country: €261,657 – up 11.4%

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