Commenting on the CSO Residential Property Price Index for June, which were published last week, Brokers Ireland said while prices continue to edge higher with six of the 20 areas captured in the index now showing double digit growth, the housing situation is worrying.
Rachel McGovern (Deputy Chief Executive at Brokers Ireland) said recent data from the CSO also showed a fall of 5.4% to 6,884 in the number of new dwelling completions in Q2 2024 compared with the same three months of 2023.
At the other end of the development spectrum, commencement notices were up, with a spike in April 2024 before incentives for developers – a waiver for development levies and waste water connection charges – were due to expire but then extended until later in the year.
“The bottom line is, there are not enough homes available and at affordable prices,” said Rachel McGovern. “Demand and supply are way out of kilter and in this context it’s hardly surprising that house prices continue to edge higher”.
She said to make any real impact and reach a situation where home prices stabilise and become more affordable a different, ‘whole of Government’ plan is needed.
“The Government’s own Housing Commission report published in May following two and a half years’ work by a panel of experts, provides the best set of solutions so far.
“However, the jury is still out on when and if the seismic recommendations of that report will be implemented,” she concluded.
