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The growth of housing market in Ireland shows signs of slowdown

The growth of housing market in Ireland shows signs of slowdown
Image by Jens Teichmann from Pixabay

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.

Also Read: House prices: Cork seeing a rise and Dublin seeing the first fall in 3 years

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