Limerick house prices rising faster than in Dublin

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HOUSE prices in Limerick rose at faster rates than in Dublin over the past six months, according to the latest report from property website Daft.ie.

Asking prices in Limerick were 11.1 per cent higher than in 2021 at €250,421. 

In Dublin, the increase over the 12 months to June was 6.6 per cent to €429,384  while using prices in Cork climbed by 9.4 per cent  per cent to €330,871.

In its latest analysis of the market, Daft found that asking prices for houses rose 3.8 per cent through the second three months of this year to an average of €311,874.

That figure was 9.5 per cent more than during the same period in 2021, Daft said, while the second-quarter jump was the biggest three-month gain in almost two years.

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Daft said there are now slightly more homes for sale in the State than a year ago, the first time since mid-2019 that has been the case.

Trinity College Dublin economist and report author Ronan Lyons noted there were signs that the market may be turning. Supply is increasing, aided by new home construction, he said.

“On the demand side, the rise in interest rates, prompted by inflation, will feed through to housing demand in due course,” Mr Lyons added.

Pat Davitt, chief executive of the Institute of Professional Auctioneers and Valuers, questioned whether interest rate rises would hit house price inflation.

He argued that with pent-up demand, a growing population, excessive rents and slow construction, “prices could stay elevated through a cycle of interest rate rises”, depending on the extent of the increases.