House price inflation has risen to a three-year high of 10.9 per cent which is the strongest level of growth seen since June 2018.
As reported The Irish Times, this comes amid panic buying, low borrowing costs and increased working from home fuel greater activity in the market.
New data released by the Central Statistics Office has shown house prices in Dublin rose by 10.2 per cent year-on-year in August. Furthermore, prices outside the capital were 11.5 per cent higher.
It has also been reported that the number of property transactions fell by 1.5 per cent in August to 3,764, with the total value of transactions put at €1.3 billion.
In the area of pricing, buyers paid an average of €313,619 for a home in the 12 months to August.
Across the State, Dublin had the highest mean price of €484,147 while Dún Laoghaire-Rathdown had the highest average price in the Dublin region at €655,124.
Despite this, Dublin residential property prices are 14.9 per cent lower than their February 2007 peak.
When looking outside of Dublin, the mid-east was the most expensive region with a mean price of €330,813.
Concern for buyers
Speaking about the latest figures, Joey Sheahan, Head of Credit at MyMortgages.ie said the new figures are a source of concern.
“The price increases we are witnessing in the CSO’s monthly report are definitely a source of concern for many prospective homeowners throughout the country,” Mr Sheahan said.
“Some people see prices gradual tick upwards and think that time is of the essence — they must get on the property ladder asap before the homes they want become completely unaffordable.
“While others are worried that by buying now, they will be paying over the odds and are wondering if they should hold off in the hope that prices will decrease in the short to medium term.
“We always advise people that rather than concern themselves solely with when is the “right time to buy”, the question they should really be asking is “when is the right time for me to buy”.
“Prices continue to trend upwards but if you are paying high rent, and yet you have the funds to apply for a mortgage, then now might be your “right time”.
“Banks are lending and prices haven’t returned to the levels we saw at the peak.
“I think when people hear of prices rising, they get nervous — immediately thinking of the crash that shook the country not so long ago.
“But this isn’t the same market — the rises aren’t as meteoric and bank lending is much more prudent.
“If you only borrow what you can afford to repay, don’t stretch yourself too much financially, and purchase a property that suits your needs, then you should be confident that your step on the property ladder is a well-thought out one.”