Home prices soar to Celtic Tiger levels as lender raises mortgage rates by 1pc

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REAL ESTATE prices hit their highest level since the Celtic Tiger boom.

rice rose 14.1% in June, with Dublin up 11.8%, according to the CSO.

The surge in property prices comes as mortgage lender Avant Money is due to raise mortgage rates from Monday.

The Central Bureau of Statistics said its ownership is now at its highest level since the April 2007 boom.

Prices outside Dublin were up 16% in the year to June.

In June, some 4,087 home purchases by households at market prices were filed with the Revenue Commissioners.

This is a 17.7% increase from 3,473 purchases in June of last year.

Existing homes accounted for 3,308, or 81%, of home purchases filed with revenue commissioners in June.

The balance of 779 was new housing.

National prices jumped 1.2% in June, compared to a 0.8% monthly increase the previous month.

This dashed the hopes of potential buyers that the rate of increase was slowing.

The area outside of Dublin which saw the biggest 12 month rise in house prices was the Border, made up of Cavan, Donegal, Leitrim, Monaghan, Sligo at 20%,

This likely reflects people leaving cities to return to areas where they grew up to work remotely.

At the other end of the scale, house prices in the Midwest, made up of Clare, Limerick, Tipperary, rose by 12%.

CSO statistician Viacheslav Voronovich said: “The national index has now reached the value of 163.6 points, which is equivalent to its highest level at the peak of the housing boom in April 2007.”

The median price of a home purchased in the 12 months to June 2022 was €290,000.

The lowest median price for a house in the 12 months to June 2022 was €140,000 in Longford, while the highest median price was €605,000 in Dún Laoghaire-Rathdown.

Households paid a median price of €290,000 for a home in the residential real estate market in the 12 months to June 2022.

The Dublin region had the highest median price (€415,000) in the year to June. In the Dublin area, Dún Laoghaire-Rathdown had the highest median price (€605,000), while South Dublin had the lowest price (€375,000).

The highest median prices outside Dublin were in Wicklow (€400,000) and Kildare (€350,000), while the lowest price was €140,000 in Longford.

Before Money, which introduced some of the lowest mortgage rates in the market, said that from Monday it would raise its lending rates.

Market funding costs have risen sharply this year and with one ECB rate change already announced, more are expected, the lender said.

The changes will impact new borrowers, not those on existing fixed rates with the Spanish lender.

Avant Money’s three-year fixed rate product is increasing by 0.30 percentage points, with new rates now starting at 2.25%.

Avant Money’s four- and five-year fixed-rate products will rise by 0.50 percentage points

The seven-year fixed rate product increases by 0.70 percentage points.

Avant Money offers longer term fixed rate “one off mortgages” with fixed terms up to 30 years.

The cost of these mortgages will increase by 1 percentage point.

There is no immediate change for existing flat rate customers.

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