Properties in Ireland are on average selling for over 3.5% above their asking prices at the moment, according to an analysis of the market by the property website daft.ie.
This time last year, the gap nationally had been just 0.4%.
In early 2020, the typical transaction price was 0.5% below the listed price, the analysis shows.
Over the 12 year period from 2010, the typical property sold for a price that was 0.3% above its listing price, but there have been massive variations throughout that time.
Websites such as daft.ie and myhome.ie base their property price reports on asking prices for properties listed on their websites.
In most circumstances, asking prices and final transaction prices end up roughly corresponding but at certain points, the asking prices have been purely aspirational and the properties end up selling for below the price sought.
For instance, between 2010 and 2012, properties sold on average for 10% below their initial listed price.
In early 2022, however, the typical transaction price was 3.7% above the listed price.
“The last three quarters have seen greater market heat – as measured by the premium paid by buyers above the listed price – than at any other time since the start of 2010,” Ronan Lyons, Trinity College Economics Professor and author of the property price reports for daft.ie explained.
The report is a follow up study to the property price report published by daft.ie earlier in the week which found that asking prices here increased by almost 8.5% in the year to March with a significant gap in the increases being captured in Dublin – where asking prices were up 4% – and the rest of the country, where average price inflation of 12.3% was recorded.
“Prices have increased quarter-on-quarter nationally for seven consecutive quarters since the second quarter of 2020, when Covid 19 had – initially – a negative effect on prices,” Mr Lyons said.
“The Daft.ie Report has been going for 64 quarters, since the start of 2006, and in all that time, there has never been a period where prices increased for seven consecutive
quarters,” he added.
Article Source – Average house selling for above asking price – daft.ie – Brian Finn