The annual rate of house price inflation continued to ease during the second quarter of the year, the latest residential market review from property advisors DNG show.
The DNG National Price Gauge shows that at a national level (excluding Dublin) the annual rate of growth in prices eased to 12% for the year to June from a rate of 13.6% recorded in the year to December 2021.
A similar trend was also evident in the Dublin market, where the DNG House Price Gauge (HPG) recorded an increase in the average price of a resale property of 8% in the year to June.
This compared to a rate of 8.8% for the 12 months to the end of March 2022.
The DNG Apartment Price Gauge (APG), which measures price movements in Dublin apartment market, recorded an increase in prices of 6.2% in the year to June, down from a rate of 7.4% in the year to December 2021.
Meanwhile, the average price of a resale property nationally (excluding Dublin) rose by 6% in the first six months of the year.
This brings the average value of a property to €261,709, up from €246,418 at the end of December 2021.
The average price of a home in Dublin rose by 2.3% taking the average price of a resale property in the capital to €521,381 at the end of the second quarter.
DNG noted that on a regional basis, the annual rate of price growth in the year to June was strongest in the West region, with growth of 13% and below average in the Mid-East region with a growth rate of 11.1%
All regions saw price inflation of more than 10% in the year to June.
But the pace of price inflation moderated in all regions, except for the South East Region, in the year to June when compared to the year to December 2021, DNG said.
DNG Director of Research Paul Murgatroyd said the latest results of the DNG price gauges confirm that residential property prices across the country are still rising but the pace at which they are doing so has moderated slightly.
He said this suggests that we may well be closer to another peak in the market.
"Affordability continues to be an issue impacting buyers, particularly in Dublin and the Mid-East Regions due to strong price growth in the last two years," Paul Murgatroyd said.
He said that DNG expects the rate of price inflation to moderate further in the second half of the year, in line with a turn in the interest rate cycle and more supply coming to the market.
But he also noted that demand in the market remains strong due to positive demographic trends.
"Recent CSO Census data shows that the population is now at its highest level since 1851 at 5.12 million. The population increased by 361,671 between 2016 and 2022 with net inward migration contributing 190,333 persons to that total which has significantly increased demand for housing at a time of constrained supply," he added.
DNG CEO Keith Lowe said the market remains strong with the level of price growth inflation reducing somewhat in the capital which is welcome and predicted.
"This will continue for the balance of the year as more properties come for sale in the new and second hand market," Mr Lowe said.
He said that DNG has put 33% more homes for sale this month than the corresponding month last year, as more people are now choosing to move home.
"Property prices outside the capital continue to accelerate at a quicker rate than in Dublin, mainly due to the lack of new homes construction outside the capital, but like Dublin, the level of price rises will also reduce as this year progresses, which is good news for buyers," Mr Lowe said.
"In addition, July will see the launch of the widely anticipated new shared equity loan scheme, the First Home Scheme. This will be a game-changer for first time buyers and will hugely assist with affordability allowing many aspiring home owners to climb onto the first rung of the property ladder," he added.
