The average price of homes in Dublin, Ireland has seen a significant increase over the last few months since March of 2021. According to a survey by the Real Estate Alliance (REA) the average price of a house in Ireland been rising by about €1,500 each week every week since March 2021. Back in March the average price of a home was around €438,500, but has down nothing but rise all the way to a current average of about €456,667.
This is a sharp rise in the value of homes in Dublin as families and homebuyers feel more confident trying to a purchase a home as the economic effects of the Covid-19 pandemic start to cool off. Last year during 2020 the annual increase in the value of homes was only around 1.4%. Now, in the second quarter of 2021 alone the value of homes has increased nearly three times as much at a startling high rate of 4.1%.
But why has the average value of homes in Dublin been increasing so rapidly in these recent months?
Like most things in this day and age, the pandemic is the culprit for this development. As families entered lockdown during the pandemic they put off plans to expand from their current homes and find a new one either for themselves or their families. But now, with the pandemic’s severity decreasing, these former prospective homebuyers are trying to get back into the market.
The pent-up drive from multiple home buyers has created a significant increase in demand for homes in Ireland. This large demand means that Ireland is currently experiencing a seller’s market, where the parties that own the homes being sold are essentially able to set their prices higher, and home buyers will still be willing to stretch their budget to meet the price.
With the country starting to open up again many home buyers have been able to move on from the budgeting and planning stage of the home buying process to actually touring homes and exploring neighborhoods without fear of getting themselves or other sick. This has a huge influence on a homebuyer’s mentality, as they will be unlikely to try and make an offer on a home that they have never actually seen and toured in person. This desire to get out of their current homes and actually start looking at the houses they have been researching has also had a huge influence on the increase in demand.