People hoping that residential property prices would fall significantly in 2023 are likely to be disappointed, a mortgage expert has said.
The most recent CSO statistics revealed residential property prices rose by 8.6 per cent in the 12 months to November 2022. However, price growth is slowing, said Association of Irish Mortgage Advisors chairman Trevor Grant.
“Logic suggests that prices increase when demand exceeds supply and fall when supply exceeds demand – but this does not hold true in this particular instance,” said Mr Grant. “Whilst supply is currently improving with a greater number of new builds for completion achieved and more houses coming onto the second-hand market, regretfully, demand still comfortably exceeds supply.
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"There are thousands of hungry house hunters out whose primary goal is to secure a home and unfortunately, they are all vying for a limited number of suitable properties."
In Dublin, house prices increased by 7.1 per cent, and apartment prices were up by 6.4 per cent, CSO data shows. The highest house price growth in Dublin was in South Dublin at 11 per cent, while Dublin City saw a rise of 5.1 per cent. The most expensive Irish Eircode area over the 12 months to November 2022 was Blackrock, with a median price of €745,000.
Frenzied bidding activity seems to have dissipated, according to Mr Grant, but there is still plenty of competition and people are more prepared than ever. He said: “Those who use the services of a market based broker are well prepared and are invariably in a stronger position than those who don’t. Not all mortgage offers are the same and currently, lenders are not obliged to tell customers that they can get better terms elsewhere,”
Mr Grant also observed that mortgage payments still look like a more lucrative deal than rental commitments despite the recent and “potential future increase” in interest rates. On the mortgage side, applications for new mortgages and to switch continue at a pace, he said.
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