Irish House Price Growth Slows Adding to Signs Market Cooling

Irish house price inflation in Ireland continued to slow in November, adding to evidence that the tight housing market is loosening.

(Bloomberg) — Irish house price inflation in Ireland continued to slow in November, adding to evidence that the tight housing market is loosening.

Residential property prices rose 0.2% in November on a monthly basis, compared to a rise of 0.3% in October and 0.6% in September, data from Ireland’s Central Statistics Office show. The cost of a home rose 8.6% over the year, down from a 9.7% increase in the year to October.

Prices outside Dublin advanced the most over the year, posting a 9.8% gain, while property prices in the capital climbed 7%.

The figures come as housing markets globally are roiled by rising interest rates and a cost-of-living crunch. UK house prices dropped from record levels in November, data on Wednesday showed. The average home purchase in Ireland is 7.7 times average income, similar to levels in the UK, a recent report by MyHome and Davy found.

Meanwhile, Ireland is also grappling with an extreme lack of supply, particularly in the rental market, which may help to buoy prices.

“Monthly gains in prices have been getting smaller for some time now though, suggesting the market is cooling,” Goodbody Chief Economist Dermot O’Leary said. However, while prices for apartments across the country fell on a monthly basis, the price for a house only fell in Dublin, he added.