PROPERTY REPORT in partnership with Davy Q2 / 2022 Irelands leading property portal myhome.ie/reports PROPERTY REPORT in partnership with Davy Q2 / 2022 Irelands leading property portal myhome.ie/reports MyHome.ie Property Report SUMMARY 15% 20,935 NEW LISTINGS FOR SALE IN Q2 20,935 TRANSACTIONS 2022 WERE 10,513, UP 15% ON RECORDED SO FAR IN 2022 THE SAME PERIOD OF 2021 UP 7% ON 2021 10.9% 2.6 months PRICE INFLATION SLOWS TO TIME TO SALE AGREED DROPS TO JUST 2.6 MONTHS 10.9% (FROM LAST CONTENT MYHOME.IE WELCOME, JOANNE GEARY 3 COMMENTARY - DAVY RESEARCH 4 ASKING PRICES 6 AVAILABILITY 8 MORTGAGES 10 ECB RATES 12 SUPPLY 14 RENTAL MARKET 16 PROPERTY PRICE REGISTER 18 DUBLIN ANALYSIS 19 REGIONAL ANALYSIS 20 COUNTY ANALYSIS 22 METHODOLOGY 24 HIGHLIGHTS 28 MyHome.ie Property Report 15% ITS GOOD TO SEE SUPPLY IMPROVING WITH NEW LISTINGS FOR SALE UP BY 15% ON THE SAME PERIOD IN 2021, BUT SUPPLY STILL CANNOT KEEP PACE WITH DEMAND. 2 MYHOME.IE WELCOME MYHOME.IE In the last MyHome.ie Property Price Report, released in March this year, we predicted that the particularly high level of national property price inflation recorded at the time would probably not be sustained in the medium to long term, given the amount of external factors at pl MyHome.ie Property Report COMMENTARY This quarters MyHome.ie report shows there was a moderate slowdown in house price inflation in Q2 2022. Asking prices rose substantially, by 5% on the quarter, as they typically do ahead of the busy summer trading season, but the annual inflation rate fell back MYHOME.IE 24% For the first-time buyer, 24% of disposable income is absorbed by mortgage payments IMPROVEMENT IN HOUSING AVAILABILITY, WITH VENDORS COMING BACK TO THE MARKET 5.0% Asking prices rose substantially, by 5% on the quarter 0.1% Residential Property Price Index (RPPI) rose by just 0. MyHome.ie Property Report ASKING PRICES The MyHome report shows asking price inflation slowed moderately to 10.9% in Q2 2022, down from 12.3% in Q1. Prices rose substantially on the quarter, as they typically do ahead of the busy summer trading season, but at a slightly slower pace than in 2021. I MYHOME.IE FIGURE 4. AVERAGE TIME TO SALE AGREED, MONTHS Months 14 12 10 8 6 4 2 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Dublin HOUSING MARKET AVAILABILITY IMPROVING POST COVID ex-Dublin 15% NEW LISTINGS FOR SALE ON Q1 2021 Ireland Source: MyHome.ie The upshot is that re MyHome.ie Property Report AVAILABILITY OF PROPERTY TO BUY In June, there were 12,700 properties listed for sale on MyHome. This is up from 11,200 in March and flat over the past 12 months. This is the first time we have not seen a year-on-year decline in the number of properties listed for sale s MYHOME.IE FIGURE 4. AVERAGE TIME TO SALE AGREED, MONTHS 290 270 250 230 210 190 170 150 2005 2007 Dublin 2008 2010 ex-Dublin 2012 2014 2016 2018 2020 Ireland Source: MyHome.ie HOUSING MARKET AVAILABILITY IMPROVING POST COVID 15% NEW LISTINGS FOR SALE ON Q1 2021 The upshot is that resi MyHome.ie Property Report MORTGAGES Mortgage lending rose to €10.8bn in the 12 months to Q1 2022, a fresh cycle high. However, mortgage approvals show there is clearly excess demand in the housing market, €13.9bn in the 12 months to April. Effectively, 20% of homebuyers with approval, or 8,500 pote MYHOME.IE FIGURE 6. AVERAGE MORTGAGE APPROVAL AND DRAWDOWN, €000 Source: Banking & Payments Federation Ireland For the first time, Irish homebuyers are now being approved for levels of mortgage debt that exceed those taken out during the peak of Celtic Tiger era (€283,000 in Q1 2008). However, th MyHome.ie Property Report ECB RATES The ECB has signalled that it will raise its key policy rates by 0.25% in July, with a larger 0.5% rise likely in September, unless the medium-term outlook for inflation improves. IRELANDS HOUSING MARKET SHOULD BE RELATIVELY INSULATED TO HIGHER ECB RATES The ov MYHOME.IE FIGURE 7. IRISH FIRST-TIME BUYER CHARACTERISTICS Assets 2017 2018 2019 2020 H1 2021 RATES AT 4% House price €269,444 €283,996 €289,763 €298,539 €302,092 €302,092 Deposit €58,858 €60,511 €57,750 €56,997 €61,624 €61,624 Loan €210,586 €223,485 €232,013 €241,541 €24 MyHome.ie Property Report SUPPLY The news that housing completions equalled 5,669 units in Q1 2022, typically the weakest quarter of the year, is an encouraging sign. In total, 22,200 units were completed in the previous 12 months. Of these, just 6,100 comprised apartments, still a small portion o MYHOME.IE FIGURE 8. HOUSING STARTS AND COMPLETIONS, PLANNING PERMISSIONS, UNITS, 000s Source: Central Statistics Office RESIDENTIAL CONSTRUCTION TO IMPROVE THROUGH 2022 HOUSING COMPLETIONS AT THEIR LOWEST LEVEL SINCE THE EARLY 1990s ANNUAL TOTAL FOR UNITS GRANTED PLANNING PERMISSION CLOSE TO 40, MyHome.ie Property Report RENTAL MARKET According to the Residential Tenancies Board (RTB), rents rose by 9% through 2021 to a fresh record high of €1,415 on average and by 8.9% to €1,972 in Dublin. FIGURE 9. RENT PRICE INFLATION, YEAR-ON-YEAR % 9,350 NO OF TENANCIES IN Q4 2021 Upward pressure o MYHOME.IE FIGURE 10. RENTAL YIELD AND INTEREST RATES, % 6 6 5 5 4 4 3 3 2 977 2 2007 2007 BUY-TO-LET MORTGAGE DRAWDOWNS IN 2021 2009 2009 2011 2013 2015 2017 2011 2013 2015 2017 2019 Rental Yield - National Rental Yield - National Interest Rate - Mortgage Lending Interest Rate - Mor MyHome.ie Property Report PROPERTY PRICE REGISTER ANALYSIS The Property Price Register shows that so far 20,935 residential transactions have been recorded in 2022, worth €7.5bn, or €357,000 on average. Market activity has recovered in 2022 SUMMARY: 20,935 7% €356,844 TRANSACTIONS RECORDED SO MYHOME.IE DUBLIN ANALYSIS The official RPPI indicates that prices were flat in April, but still up 11.5% in the year. Double-digit inflation persisted across the county in April: Dublin City (12.7%), Dun LaoghaireRathdown (9%), Fingal (11.6%) and South Dublin (11.6%). The MyHome data show asking pr MyHome.ie Property Report REGIONAL ANALYSIS The median price of all properties listed for sale on the MyHome website was €278,000, up 4.9% on the year. LEINSTER The median prices in Louth have seen the strongest gain over the past 12 months, up 15.4% to €225,000 in Q2 2022, closely followed by the MYHOME.IE FIGURE 11. MEDIAN ASKING PRICE, ANNUAL % CHANGE Q2 2022 CORK CITY €269,500 GALWAY CITY €295,000 LIMERICK CITY €215,000 WATERFORD CITY €175,000 5.7% 3.5% 2.4% 9.4% GALWAY LIMERICK CORK WATERFORD Source: MyHome.ie Property Report Q2 2022 21 MyHome.ie Property Report REGIONAL ANALYSIS CONNACHT/ULSTER GALWAY In Leitrim, prices have increased by 12.7% to €165,000, by 13.6% in Roscommon to €159,000 and by 12.6% in Sligo to €179,000. In Galway, prices are up 7.8% to €275,000 and up 3.5% in Galway city to €295,000. In May, there has been FIGURE 12. MEDIAN ASKING PRICE, ANNUAL % CHANGE Q2 2022 MYHOME.IE CARLOW CAVAN CLARE CORK €265,000 €185,000 -1.15% 13.43% 2.22% 6.00% 19.35% GALWAY KERRY KILDARE KILKENNY €232,500 LAOIS €190,000 7.84% 2.27% 6.18% 5.68% 2.70% LEITRIM LIMERICK LONGFORD LOUTH €225,000 MAYO MyHome.ie Property Report COUNTY ANALYSIS COUNTY Q2 2022 Q/Q ANNUAL Carlow 150,000 7.53% 25.00% Cavan 97,500 0.00% 8.33% Clare 140,000 3.70% 12.00% Cork 199,000 2.05% 4.74% Donegal 124,750 10.89% 51.21% Galway 225,000 2.27% 7.14% Kerry 160,000 9.03% 7.20% Kildare 18 MyHome.ie Property Report MYHOME.IE COUNTY ANALYSIS FOUR-BEDROOM SEMI-DETACHED In Dublin, the median price for four-bedroom, semi-detached houses rose to €500,000 for the first time, up 5.5% on the year. Prices in Wicklow rose at a faster pace, up 10.5% to €477,500. In Kildare, prices rose at a MyHome.ie Property Report REPORT METHODOLOGY The trends presented in this report are based on actual asking prices of properties advertised on MyHome.ie with comparisons by quarter over the last eight years. THE REAL TRENDS IN PROPERTY PRICES ARE EASILY OBSCURED 26 MYHOME.IE This represents the MYHOME.IE OUR DATA IS COLLECTED FROM QUARTERLY SNAPSHOTS OF ACTIVE, AVAILABLE PROPERTIES ON MYHOME.IE. Graham is an independent financial analyst who specialises in investment consulting services. He previously managed portfolios for an international mutual organisation in London with over £14 bil MyHome.ie Property Report Q2 2022 HIGHLIGHTS SUMMARY Q2 2021 Q2 2022 NUMBER OF PROPERTIES ON THE SITE 12,687 12,685 NUMBER OF PROPERTIES SOLD FROM PPR. PPR UPDATE 20,534 21,198 3.2% NUMBER OF NEW PROPERTIES ON THE MARKET 9,167 10,513 12.8% 3.8 2.6 31.6% NATIONAL TIME TO SALE AGREED 6.6% MYHOME.IE 15% Q2 homebuyers were bidding up transaction prices 6.6% above asking new listings for sale up 15% on Q1 2021 20% of approved mortgage applicants failing to secure property Asking prices 5.3% 3.4% 6.1% NATIONAL €320,000 DUBLIN €403,000 EX-DUBLIN €270,000 National time to MyHome.ie Property Report Contact Us CONTACT RYAN COYLE T: 01 827 9400 E: dataprotection@myhome.ie DEIDRE GLEESON T: 01 827 9400 E: advertising@myhome.ie FOLLOW US ON SOCIAL /MYHOME.IE 30 MYHOME.IE @MYHOME.IE /MYHOME.IE /MYHOMEPROPERTY Theres no place like house - said no one, ever. A house is just bricks and mortar, but a home - thats the place where you feel most comfortable, where you can truly relax. At myhome.ie were dedicated to helping you find that place. So whether youre moving, buying or renting, find your perfect home A strong symbol makes a big difference For over 47 years, the Guaranteed Irish Symbol has represented all thats great about Irish services and products. It supports local jobs, communities, and a thriving Irish economy. Thats why Davy are delighted to be a Guaranteed Irish member. For world-class bu