The median asking price for a home in Ireland now stands at €365,000, reflecting a 0.8% increase from the previous quarter. The rise in prices is more pronounced outside the capital, where prices have surged by 8.5% over the year, bringing the median asking price to €315,000. In Dublin, the annual increase was 6.2%, with the median price reaching €455,000.

Several factors contribute to this upward trend. One significant driver is the limited supply of homes. As of September, there were 13,100 homes listed on MyHome.ie, a figure significantly lower than pre-pandemic levels. This shortage is exacerbated by the reluctance of potential sellers who fear they might not secure a new property after selling their current one.

Economic factors also play a role. The relaxation of Central Bank mortgage lending rules for first-time buyers has increased the share of first-time buyers with higher loan-to-income ratios. Additionally, average earnings have risen, which has helped drive up mortgage approval values.

In Waterford, house prices have seen a substantial increase. In Waterford City, prices in the third quarter of 2024 were 3% higher than a year previously, with the average price of a home now at €250,000. In the rest of Waterford, prices rose by 8% over the same period, with the average price reaching €348,000.

The overall housing market in Ireland remains under pressure due to the country’s population growth, which has been 1.9% for the second consecutive year. To match the UK’s housing-to-population ratio, Ireland would need to build an additional 206,000 homes.

Despite the challenges, there are some positive signs. New housing starts have risen to 49,000 in the year to July, and MyHome.ie expects completions to increase sharply next year to above 40,000 units. However, the impact of build cost inflation and elevated energy costs remains a concern.

In addition to these factors, the report highlights that one in seven properties are now selling for 20% over the asking price, indicating a highly competitive market. This trend is particularly evident in Dublin, where the demand for housing continues to outstrip supply.

The report also notes that the average time to sale agreed was just 12 weeks in the third quarter, close to a historic low. This rapid turnover is a clear sign of the high demand and limited supply in the market.

Conall MacCoille, Chief Economist at Bank of Ireland, commented on the situation, stating that the rising population and economic growth are reminiscent of the Celtic Tiger era. He emphasised the need for a significant increase in housing supply to meet the growing demand.

Joanne Geary, Managing Director of MyHome.ie, expressed optimism about the future, noting that the increase in housing starts and expected completions are positive signs. However, she also stressed the importance of sustained efforts to address the imbalance in the market.

The Irish housing market is experiencing significant price increases driven by limited supply, economic factors, and population growth. While there are efforts to increase housing supply, the market remains tight, and prices are expected to continue rising in the near term.

One of the key changes is the introduction of a new seasonal employment permit. This permit is designed to support sectors with seasonal needs, such as fruit picking. Additionally, the new regulations will allow certain categories of permit holders to change employers after a nine-month period, providing greater flexibility for workers.

The new Act also includes provisions for subcontractors, who will now have access to the employment permit system. This change is expected to benefit various industries by allowing more fluid movement of labor. Furthermore, non-consultant hospital doctors will be able to work at multiple sites under a single permit, which is a significant improvement for the healthcare sector.

Another notable change is the extension of employment permit quotas for two key roles. A new quota of 500 permits will be granted to the home care sector, and a further 250 permits will be issued to lineworkers to help relieve pressure on the ESB Networks’ overhead line framework contractors.

The Act also introduces new notification obligations and streamlines the labor market testing processes. These reforms are expected to make it easier for employers to attract talent while ensuring compliance with the new regulations. The government has emphasized that these changes will help Ireland attract more international talent, which is crucial for the country’s economic growth.

Minister for Enterprise, Trade and Employment, Peter Burke, highlighted that the improvements in the new Act will allow for a more modern and flexible employment permits system while ensuring employee rights are maintained. Minister of State for Business, Employment and Retail, Emer Higgins, added that the new law, along with recent measures like granting work rights to eligible spouses and partners of certain employment permit holders, will significantly help in attracting international talent.

These changes are expected to benefit both employers and employees by creating a more adaptable and efficient employment permit system. The new regulations will come into force on September 2, 2024, marking a significant step forward in Ireland’s efforts to modernize its labor market and attract global talent.