Economics Weekly July 12th
This week’s MyHome report showed asking price inflation accelerating to 7.3% in Q2 2024, the fastest pace in two years. Furthermore, residential transactions in June were being settled at 6% above the original asking price – indicative of intense competition amongst homebuyers. The fresh momentum in Irish house prices is being driven by the resilient economy and specifically pay growth. Average earnings grew by 4.7% in year to Q1 2024 to €50,300, helping to push the average mortgage approval in May to a fresh high of €315,900, up 6.4% on the year. Unfortunately, supply remains exceptionally tight, particularly in the existing homes market. There were just 12,500 homes listed on MyHome in June, down 11% on the year, close to the historic lows seen during the Covid19 pandemic. Irish house prices now look likely to see a high single-digit rise in 2024, rather than the 4% we had previously forecast.
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