PROPERTY REPORT in partnership with Davy Q3 / 2022 Irelands leading property portal myhome.ie/reports PROPERTY REPORT in partnership with Davy Q3 / 2022 Irelands leading property portal myhome.ie/reports MyHome.ie Property Report SUMMARY 32% 7.8% 2022 WERE 16,300, UP 32% ON PRICE INFLATION SLOWS TO THE SAME PERIOD OF 2021 7.8% (FROM LAST QUARTERS NEW LISTINGS FOR SALE IN Q3 NATIONAL HOUSE ASKING FIGURE OF 10.9%) 37,826 TRANSACTIONS RECORDED SO FAR IN 2022 UP 8% ON 2021 2.6 months TIME CONTENT MYHOME.IE Welcome, Joanne Geary 3 Commentary - Davy Research 4 Asking prices 6 Availability 8 Mortgages 10 Supply 12 Rental Market 14 Property Price Register 16 Dublin Analysis 17 Regional Analysis 18 County Analysys 22 Methodology 24 Highlights 26 Property Report MyHome.ie Property Report LISTINGS ON MYHOME.IE ARE UP 32% YEAR ON YEAR, WHILE THERE HAS BEEN A 25% INCREASE IN THE AMOUNT OF PROPERTIES FEATURED ON THE WEBSITE SINCE LAST YEAR. 32% 2 MYHOME.IE WELCOME MYHOME.IE It appears that a number of factors have eased the runaway asking price inflation we were seeing earlier this year. This is in line with our predictions throughout the year and it is important to note that this represents a much-needed correction in the market. One promising sign MyHome.ie Property Report ASKING PRICES The MyHome report shows asking price inflation slowed to 7.8% in Q3 2022 The MyHome report shows that asking prices fell by 1.3% in Q3, pushing down annual inflation to 7.8% from 10.9% in Q2 2022. Asking prices in Dublin fell by 1.1% in Q3, up 6.2% on the ye MYHOME.IE 3% Excepted growth of 3% in Irish house prices in 2023 STRETCHED VALUATIONS AND OVERLY EXUBERANT EXPECTATIONS AMONG VENDORS ARE TAKING A TOLL ON PRICING 1.3% 0.1% Asking prices fell by 1.3% on the quarter Residential Property Price Index (RPPI) rose by just 0.1% The Construction Pur MyHome.ie Property Report ASKING PRICES The MyHome report shows asking price inflation slowed to 7.8% in Q3 2022 The MyHome report shows that asking prices fell by 1.3% in Q3, pushing down annual inflation to 7.8% from 10.9% in Q2 2022. Asking prices in Dublin fell by 1.1% in Q3, up 6.2% on the ye MYHOME.IE FIGURE 2. MYHOME ASKING PRICE INFLATION, MIX-ADJUSTED CHANGES MEDIAN PRICE QOQ % YOY % National €320,000 -1.3% 7.8% Dublin €420,000 -1.1% 6.2% ex-Dublin €275,000 -1% 9% Source: MyHome.ie ASKING PRICE INFLATION DUBLIN ASKING PRICE INFLATION NATIONWIDE 6.2% 7.8% ASKING P MyHome.ie Property Report AVAILABILITY OF PROPERTY TO BUY In September, there were 16,300 properties listed for sale on MyHome. This is up from 12,700 in June and a sharp rise from a low of 11,200 earlier this year. Following the disruption of the COVID-19 pandemic, housing market conditions have 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 Source: MyHome.ie HOUSING MARKET AVAILABILITY IMPROVING POST COVID 32% NEW LISTINGS FOR SALE ON Q2 2021 This improvement in liquidity no doubt reflects t MyHome.ie Property Report MORTGAGES Latent demand still apparent in mortgage lending Mortgage approvals equalled €14.7bn in the 12 months to July, well in excess of the €11.7bn of actual drawdowns and indicative of frustrated latent demand for housing. In the 12 months to June, 16% of the 43,000 m MYHOME.IE FIGURE 6. HELP-TO-BUY APPLICATIONS AND CLAIMS 35 000s 30 25 20 15 10 5 0 2018 2019 2020 Applications 2021 2022 Claims Source: Irish Revenue In this context, it isnt surprising that competition among homebuyers remains intense. In July, the average mortgage approval for house pur MyHome.ie Property Report SUPPLY THERE WERE 7,654 COMPLETIONS IN Q2 2022, OR 24,929 IN THE 12 MONTHS TO JUNE Housing supply faces new headwinds Irish housing completions in 2022 have beaten expectations. There were 7,654 completions in Q2 2022, or 24,929 in the 12 months to June. There appears to MYHOME.IE IRISH HOUSING COMPLETIONS AND COMMENCEMENTS 100 000s 90 80 70 60 50 40 30 20 10 0 1971 1977 1983 1989 1995 BCMS Commencements (1 year forward) 2001 2007 2013 2019 Housing completions Source: Central Statistics Office THE ECB IS NOW EXPECTED TO RAISE RATES TO ABOVE 2% BY EN MyHome.ie Property Report RENTAL MARKET The Residential Tenancies Board (RTB) measure indicates that residential rents rose 3.3% in Q1 2022, up 9.2% on the year. Rents in Dublin rose by 3.0%, up by 8.9% on the year. 12.5% CPI PRIVATE RENTS INDEX FIGURE 9. RENT PRICE INFLATION, YEAR-ON-YEAR % Upw MYHOME.IE 416 BUY-TO-LET MORTGAGE DRAWDOWNS IN H1 2022 The Residential Tenancies Board (RTB) measure indicates that residential rents rose 3.3% in Q1 2022, up 9.2% on the year. Rents in Dublin rose by 3.0%, up by 8.9% on the year. rents has led to a less illiquid, two-tier rental market. The smal MyHome.ie Property Report PROPERTY PRICE REGISTER ANALYSIS The Property Price Register shows that 37,826 transactions worth €14.3bn have so far been recorded in 2022. This represents a marked improvement in liquidity following the disruption of the COVID-19 pandemic and has continued through the su MYHOME.IE DUBLIN ANALYSIS The official RPPI indicates that prices rose by 0.6% in July, but still up 10.4% in the year. The official RPPI shows that prices in Dublin rose by 0.6% in July, with annual inflation running at 10.4%. There was relatively little variation across the county: Dublin city (1 MyHome.ie Property Report REGIONAL ANALYSIS The mix-adjusted price of new listings for sale outside Dublin fell by 1% in Q3 2022, pushing the annual inflation rate down to 9%. In Meath, median prices were up 5.3% in Q3 versus 7.5% in Q2, rising to €289,500. In Kildare, the median price was €285,000 MYHOME.IE FIGURE 11. MEDIAN ASKING PRICE, ANNUAL % CHANGE Q3 2022 CORK CITY €280,000 GALWAY CITY €295,000 LIMERICK CITY €225,000 WATERFORD CITY €179,000 9.8% 4.42% 7.14% 5.92% GALWAY LIMERICK WATERFORD CORK Source: MyHome.ie Property Report Q3 2022 19 MyHome.ie Property Report REGIONAL ANALYSIS CONNACHT/ULSTER Three of the five counties in Connacht recorded double-digit increases in asking prices: Leitrim (10%), Roscommon (14.3%) and Sligo (12.4%) to €165,000, €160,000 and €190,000 respectively. The median price in Galway was up by 7.7% on the y FIGURE 12. MEDIAN ASKING PRICE, ANNUAL % CHANGE Q3 2022 CAVAN CLARE €225,000 €199,000 7.66% 13.71% GALWAY KERRY CARLOW MYHOME.IE CORK DONEGAL €250,000 €275,000 €185,000 4.19% 9.13% 9.47% KILDARE KILKENNY LAOIS €280,000 €235,000 €285,000 €245,000 €195,000 7.69% 9.3% 9.62% MyHome.ie Property Report COUNTY ANALYSIS TWO-BEDROOM APARTMENTS The median price of two-bedroom apartments in Dublin was €275,000, up 3.8% on the year. The median price of two-bedroom apartments in Dublin was flat quarter-on-quarter but still up 3.8% on the year to €275,000. In Kildare, prices w MyHome.ie Property Report MYHOME.IE COUNTY ANALYSIS FOUR-BEDROOM SEMI-DETACHED In Dublin, the median price for four-bedroom, semidetached houses rose to €525,000 for the first time, up 5% on the year. In Dublin, the median price for four-bedroom, semi-detached houses was €525,000 in Q3 2022 up 5 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 24 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 Q3 2022 HIGHLIGHTS SUMMARY Q3 2021 Q3 2022 NUMBER OF PROPERTIES ON THE SITE 13,392 16,300 NUMBER OF PROPERTIES SOLD FROM PPR. PPR UPDATE 34,904 37,826 8.4% NUMBER OF NEW PROPERTIES ON THE MARKET 9,333 12,466 33% 5.3 2.6 51% NATIONAL TIME TO SALE AGREED NAT 8% MYHOME.IE 32% In July, the average mortgage approval for house purchase was €288,300 up 8% on the year. New listings in the first nine months were up 32% on 2021 16% of approved mortgage applicants failing to secure property Asking prices QoQ 1.3% NATIONAL €320,000 1.1% 1% DUBLIN €420,0 MyHome.ie Property Report Contact Us CONTACT RYAN COYLE T: 01 827 9400 E: dataprotection@myhome.ie DEIRDRE GLEESON T: 01 827 9400 E: advertising@myhome.ie FOLLOW US ON SOCIAL /MYHOME.IE 28 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. 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