The growth of housing market in Ireland shows signs of slowdown
By The Headlines, February 12, 2023 | 04:28 PM
Recent developments in the Irish housing sector appear to show signs of a cooling market. House prices have been steadily decelerating, suggesting that the market is changing and moderating.
In November of 2022, residential property prices increased by 0.2% month-on-month.
The rate of annual growth in October dropped to 8.6% from 9.7%, indicating a slight decline.
Data shows that Ireland's house price inflation slowed in November, a sign that the housing market is gradually easing.
According to figures released by the Central Statistics Office of Ireland, the prices of residential properties experienced an increase of 0.2% in November, which was slightly lower than 0.3% in October and 0.6% in September. Additionally, a year-on-year review revealed that the annual growth was at 8.6%, dropping from the 9.7 % growth seen in October of last year.
Dublin's real estate prices increased by 7% while those in the outside areas climbed up by 9.8%, recording the highest increase on an annual basis.
Recent data has revealed a drop in property prices in the UK, which is being fueled by an increase in mortgage rates and an ongoing cost of living crisis. This is having a noticeable effect on housing markets across the globe. According to MyHome and Davy's recent study, the average Irish home purchase is around 7.7 times the average income, a similarity in figures to those of the UK.
Ireland is dealing with a considerable shortage in supply, particularly in the rental sector, which seems to be stabilizing prices.
Is this the right time to buy a property?
With the expected rise in first-time buyers in Ireland by 2023, mortgage advisors are providing practical advice to ensure they have a smooth journey throughout the process. From budgeting tips to understanding the loan options available, it's essential that prospective borrowers research their options thoroughly.
To get a mortgage, the Loan-to-Value limit requires you to have a certain deposit amount. This depends on which category of buyer you are, with first-time buyers and second subsequent buyers needing to put down at least 10% as a deposit.
The Central Bank of Ireland has made it a great opportunity for First Time Buyers to borrow up to 4 times their income, making it a great time for them. The biggest change from the Central Bank of Ireland from January 1 this year is that First Time Buyers can now borrow up to 4 times their income which is increased from 3.5 times previously.
It's essential that Buyers have more than just the mandatory 10% deposit in order to cover costs like Legal Fees, Stamp Duty and furnishing their new home. Furthermore, they should always seek advice from experienced Mortgage Brokers.
Also Read: Things to know about the First Home Scheme