Report reveals Westmeath property premiums continue in escalation mode

The most recently released report notes that property prices within County Westmeath in the final three months of 2021 were 13 percent higher than a year previously, compared to a rise of six percent seen a year ago - the average price of a home is now €244,000, 107 percent above its lowest point.

National housing prices rose by 7.7 percent on average during 2021, according to the report released today by Ireland’s largest property website.

The average price nationwide in the final quarter of 2021 was €290,998, up 0.6 percent on the third quarter of 2021 and just 21 percent below the Celtic Tiger peak.

While 2020 saw similar rates of inflation across the Irish housing market, significant regional differences emerged during 2021.

The smallest increases were in urban areas. In Galway city, prices rose by 1.6 percent during the year, while in Dublin, prices rose by 3.4 percent. In Cork city, prices rose by 5.5 percent while in Limerick and Waterford cities, the increases were 6.4 percent and 7.5 percent respectively.

But outside the five main cities, prices rose by an average of 11.5 percent during 2021. In Leinster, excluding Dublin, prices rose by 11.9 percent.

Fewer than 11,500 homes were listed for sale on December 1, the lowest total recorded since July 2006, when online advertising was still emerging. This represents a fall of one quarter, year-on-year.

The total number of ads of properties for sale in the year to December 1st was just over 54,000, the highest 12-month total since early 2020. While supply has improved, it remains well below pre-pandemic levels – with almost 70,000 homes listed for sale during 2019.

“Inflation in listed prices continues to cool from its mid-year peak. Nonetheless, at nearly 8% for the year, it remains stubbornly high. This reflects a combination of unusually strong demand and on-going weak supply.

“Demand for homes to buy, which had been strong anyway from the mid-2010s, has received an unexpected boost during the covid19 pandemic, with prospective buyers able to tap into ‘accidental’ savings, as expenditure fell during the lockdowns.

“Meanwhile, both new and second-hand supply remain weaker than expected before the pandemic. While the pandemic has changed some particulars, the general health of the housing market is largely unchanged – it is one characterised by weak supply in the face of strong demand. For that reason, additional supply – not just of homes for sale but also of market and social rental housing – remains key to solving Ireland’s chronic housing shortage,” Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, said.


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