SherryFitzGerald predicting house prices will slow in 2024

GROWTH in house prices continues to slow, with the average value of second- hand homes in Ireland increasing by 3.4% in 2023, according to data from Sherry FitzGerald.

This represents a slowdown on the growth of 5.7% recorded in 2022 and 9.6% in 2021.

However news for buyers – or sellers in West Cork is that price growth continues to be stronger outside of Dublin, in regional and rural Ireland, where the stock for sale is significantly tighter.

Average values nationally excluding Dublin rose 5.5% in 2023.

‘Following the above trend price inflation evident during the post Covid era, we saw a return to more moderate price growth during, 2022 a trend which continued throughout 2023. This is expected to persist into 2024 with overall prices anticipated to increase by 2% to 3% in the year ahead,’ said Sherry FitzGerald managing director Marian Finnegan.

Sales activity remains stable. In the first nine months of 2023, the latest data available, there were approximately 42,700 sales recorded on the property price register (PPR). New homes sales nationally continued to increase in the year, with an additional 140 units or 2.1% transacting when compared to the same period in 2022.

Growth appears to be stronger outside of Dublin, where an additional 450 units transacted in in the first nine months of the year, when compared to 2022.

The second-hand market remains steady with 36,000 second-hand homes transacting in the first nine months of the year, 1.8% stronger than 2022.

During 2023, around 11% of purchasers of second-hand homes with Sherry FitzGerald were investors, whereas 35% of sales were investors selling their properties. Extrapolating this data outwards, Sherry FitzGerald estimates that there has been a net loss of over 15,000 tenancies the private rental market this year.

Owner occupiers remained the most active purchasing cohort in the market in 2023. They represented 80% of all second- hand home purchases made through Sherry FitzGerald, with first-time buyers comprising over 44% of all owner occupiers.

‘While it is anticipated that house completions will average 31,000 this year, the preferred V-shaped recovery in supply has not materialised.

‘Consequently, a significant supply deficit is likely to persist in the coming years,’ said Ms Finnegan.