Annual house price inflation has risen by over 1% despite the impact of Covid-19 on the market, according to new analysis from property website MyHome.ie and Davy Stockbrokers.
Asking price inflation rose by 1.2% nationally in August compared with the second quarter of 2019. Dublin saw a 0.3% increase while the rest of the country saw asking price inflation of 1.5%, the analysis shows.
Today's figures show that the rise in quarterly asking price inflation was even more pronounced, with prices increasing by 4.3% nationally, by 2.9% in Dublin and by 4.7% elsewhere around the country.
The asking price for new sales nationally is €280,000, while the price in Dublin is €383,000 and elsewhere around the country it is €234,000.
Angela Keegan, Managing Director of MyHome.ie, said the increase in asking prices was likely a combination of people who already have mortgage approval moving to secure properties, and a shortage of stock.
"One of the many negative effects of Covid-19 has been the decrease in construction output, which has had significant ramifications for the property market," Ms Keegan said.
"Anecdotally we are also seeing people who have mortgage approval acting fast to secure properties and this, added to the fact that stock levels are low, is driving asking prices upwards," she added.
Conall MacCoille, chief economist at Davy, said today's data shows pricing has held up during the summer months.
He said the negative 3% inflation rate seen in the second quarter of 2020 now seems an aberration, driven by the small numbers of vendors prepared to put their homes on the market during the exceptionally uncertain period of the lockdown.
"Looking ahead we think prices will be broadly flat in 2020, or see marginal declines, but the impact of Covid-19 on the housing market could have a longer, slow burn impact than many appreciate," Conall MacCoille said.
