Limerick house prices have risen by 4.9% to €215,000 and by 5% in Limerick city to €210,000 in Q3 2021, according to a recent property report by MyHome.ie.
The annual asking price inflation stands at 9% nationwide, by 7.3% in Dublin and by 10.1% elsewhere around the country.
“The market is still starved of supply, with prices being bid-up aggressively by homebuyers,” said Chief Economist at Davy and report author Conall MacCoille.
Clare saw the sharpest rise in the Munster region with a 14% asking price increase to €240,000.
The Property Price Register data show that housing market activity has returned to pre-pandemic levels.
“This behaviour is evident in transactions being settled well above asking prices. For a limited pool of 450 properties sold during the summer, we have calculated the transaction price was 6.5% higher than the asking price, compared with a premium of 2.7%,” Mr MacCoille added.
There are currently 13,500 properties listed for sale on MyHome.ie, which is slightly up from last quarters figure of 12,700.
Angela Keegan, Managing Director of MyHome.ie, said in the report: “While the annual inflation hike for Q3 is not as high as the previous quarter, it is clear that the property market is still significantly overheated, and that we are some way off towards redressing the imbalance between supply and demand.”
“As always, we believe that demand and supply need to be balanced, and as such we are calling for a major increase in construction activity in 2022 and beyond,” she added.
Speaking this week, Minister for Housing Darragh O’Brien said that increased housing supply could slow down surging house prices next year.
Earlier this month the government announced its Housing For All plan, which aims to build 300,000 new homes by 2030.