Ireland Home Prices Begin Rebounding From COVID-19 Outbreak

According to a new Daft.ie Housing Market Report released today, residential sale prices rose by an average of 3.7% in May 2020, having fallen by 5.5% in April 2020. The report also shows a 0.6% rise in average rents in May 2020, compared to April. The average monthly rent nationwide in May was €1,398, 0.7% higher than a year ago, while the average listed sale price was €245,545, 1.6% lower than in May 2019.

Property Sales

Sale prices are now lower than a year ago in all parts of the country except Leinster (outside Dublin), where they remain 2.1% above levels seen a year ago. In Munster, however, the average listed price in May was 5.7% lower than a year ago. In contrast, May 2020 rents were on average higher than those seen a year previously - although in Dublin they were unchanged, while in Connacht-Ulster they were 1.7% lower.

Trends in availability show starker differences between sale and rental segments. Across the country as a whole, there were 22% fewer homes for sale on 1 June 2020 than on the same date a year previously. This reflects a collapse in new ads of homes for sale, with just one quarter the number of homes put on the market in May 2020 than the same month a year ago.

Rental Market

In the rental segment, however, the number of homes available to rent in May was up slightly nationwide - by 6%, compared to the same month last year. However supply for Dublin has surged and is up 40%, while the rest of the country saw reduced supply. In the rest of Leinster, there were just 1,234 rental listings across both April and May this year, compared to almost 1,900 in the same two months in 2019.

Rental prices nationwide did fall 2.1% in April, compared to March, a substantial fall, but this was far less than was seen in the sales market. Furthermore the recovery is much more muted (0.6%).  The national average rent is now slightly higher than a year ago (+0.7%) and the national average sale price is 1.6% lower than a year ago.
 
Commenting on the report, Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report said, "The latest figures from the housing market shows clear differences in how sale and rental markets are responding. Sale markets have been more volatile - something to be expected given the role confidence plays in making a home purchase. Rental markets have been steadier but are also pointing to lower rental levels. As the economy begins to open up again after the Covid-19 lockdown, it remains to be seen the extent of the damage, in particular in the numbers out of work. Ireland's ability to get back to work - and to reconnect with the rest of the world economy - will be critical in restoring a healthy level of housing demand. Nonetheless, huge underlying supply shortages remain, in particular homes for renters in Ireland's main cities."