A new report shows one in seven homes is selling for 20% above asking prices, according to the latest quarterly house price report from MyHome.ie.
An under supply in the housing market contributed to a 7.5% increase in national asking prices over the past 12 months.
The very high rates of employment and population growth not seen since the 2007-08 Celtic Tiger period is increasing the pressure on the housing market.
Inflation in asking prices is lower in Dublin at 6.2% year-on-year, but the rate is accelerating to 8.5% outside the capital.
The number of properties listed for sale on MyHome.ie last month was just 13,100, way down on pre-pandemic levels of more than 20,000.
The average time to sale agreed was just 12 weeks in the third quarter, a near historic low, as on-sale properties are quickly snapped up.
Conall Mac Coille, chief economist at Bank of Ireland and report author, has revealed a widening gap despite all the steps taken by the Government over its term.
“A simple way to illustrate this is to ask how many homes Ireland would need to build to match the UK’s housing-to-population ratio. Our report shows that to ‘catch up’ with the UK’s housing stock we would now require an additional 206,000 homes, versus 138,000 in 2020.”
