The cost of second-hand homes has risen by more than 7 per cent for the first nine months of 2021 compared with the same period a year ago, according to new figures from Sherry FitzGerald.
This compares with growth of just 0.7 per cent between January and September 2020.
The average value of second-hand properties nationally increased by 2.5 per cent in the third quarter, bringing prices over the year to date 7.2 per cent higher. In Dublin, prices rose by 2 per cent in the quarter with values 5.1 per cent stronger since the start of 2021.
The cost of a second-hand property in the capital is up 5.5 per cent on an annual basis.
While prices rose in Dublin, growth remains significantly stronger outside of the capital with average values rising 3.2 per cent across the Republic (excluding Dublin) in the third quarter. Prices are up 10 per cent outside Dublin in the January to September period.
Return to normal
Eoin Lynch, an economist with Sherry FitzGerald, said the residential market is returning to normalised trading levels following the Covid crisis, with sales volumes slightly above their pre-pandemic levels.
“Strong demand and diminished stock levels continue to influence above trend levels of price growth, although there are emerging indications that this rate of growth is easing,” he said.
Activity in the second-hand market is brisk, up more than 30 per cent on last year and 5 per cent ahead of trading in the first six months of 2019. In Dublin, second-hand activity is on par with 2019 levels.
However, Mr Lynch added that new home sales remain below pre-pandemic levels, although this is primarily a result of increased Government presence in the new homes market and reduced output due to site restrictions.