DUBLIN, Ireland: The average price of newly purchased homes in Ireland has risen 11 percent in the past year, with the price in second quarter 2022 reaching 320,000 euros.
Meanwhile, a report issued by MyHome.ie/Davy property found quarterly housing prices increased 5.3 percent nationally, 3.4 percent in Dublin, and 6.1 percent elsewhere around the country.
Further, asking prices for new homes nationwide reached 320,000 pounds.
The asking price in Dublin is 403,000 euros and elsewhere around the country it rose to 270,000 euros.
However, industry observers believe rising interest rates, concerns about affordability, and overall economic inflation looks set to dampen demand.
Further, it is believed that cost-of-living concerns and rising interest rates will cause property prices to fall.
Of note, the average mortgage approval rose to 283,700 euros a 9.4 percent increase for the year.
Additionally, it is reported that residential property market transactions in the first five months of 2022 increased 7 percent over 2021 and 6 percent from 2019.
A bright spot in the housing market in Ireland is that 5,000 housing units were completed in Q1.
Additionally, rents throughout Ireland rose by 11.2 percent in 2022 through May.
"Double-digit inflation and sharp price gains are set to give way to greater concerns on affordability, the economic outlook and the impact of the ECB raising interest rates," noted Conall MacCoille, Chief Economist at Davy, as reported by buzz.ie.
"The expected rise in interest rates from the ECB, while notable, will also not have the same negative effect, given the Irish market is well insulated at present."