MyHome report shows asking price slowing to 3.9%
The Bank of Ireland-MyHome report was published earlier this week, showing asking price inflation had slowed to 3.9% in Q3 2026 (from 5% in Q2), to 2.8% in Dublin and to 4.8% in the rest of Ireland. Also, the market is getting a little easier for homebuyers. There were 14,600 properties listed for sale on MyHome in September, up 12.5% on the year. The trend of existing homeowners being reluctant to sell their own homes for fear of failing to secure another seems to be levelling off. Also, we are sticking with our forecast for housing completions of 39,600 in 2026, rising to 42,000 in 2027.
This quarter, we have taken a closer look at affordability. The median residential property price of €412,000 in July is now 7.5 times average earnings of €55,000. This is the most stretched level, for this measure of affordability, since 2009. However, the typical first-time buyer in 2025 had a joint income of €95,000 and purchased a home worth four times their earnings. Also, with rental yields still around 5% nationally, compared with mortgage interest rates close to 3.5%, it still makes more sense to buy a home than to rent.
Finally, energy efficiency is a growing concern for many homebuyers. A recent study by the Sustainable Energy Authority of Ireland (SEAI) shows that, for each step up the BER scale, house prices tend to rise by 2.7%. For example, upgrading from a C-rating to an A-rating tends to raise house prices by 10–13%. However, the positive impact is smaller in more expensive urban areas – for example, by just 1.8% in Dublin for each step up the BER scale.
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