Daft House Price report June 2020


If you blinked you missed it. Prices fell in March / April but rebounded in May.

From the Business Post:

House prices in Ireland rose by 3.7 per cent in May, according to the latest Daft.ie Housing Market Report. The minor rebound comes after the average cost of buying a home fell by 5.5 per cent in April. The report also showed a 22 per cent decrease in the number of homes for sale on June 1 year on year. Additionally, the number of available rental properties nationwide rose by six per cent in May when compared with the same period in 2019 with a 39 per cent increase in supply in the Dublin market alone.

He seems to indicate that average rents in Dublin didn’t drop in May. This seems somewhat at odds to what your monthly reports indicated I would have thought.

Doesnt tally with my observations on rents either. Plenty of price drops over the past couple of months

Also ive been watching Myhome residential in the Dublin commuter belt and the trend is definitely downwards. There is a ‘price change in the area’ function under every home for sale on Myhome and across Kildare, Wicklo and Meath there have been widescale price drops.

Youd have to expect that it will feed into Dublin over the coming months, assuming recession kicks in and working from home becomes the new normal for many.

The (marginal) increase in asking rents in Dublin last month is hard to square with the continuing sharp increase in supply

In Dublin, availability of homes to rent is up 47%

Unless we go back to working in offices and the students are required to attend their classes physically, there will be a major adjustment in Dublin rents later this year.

It is also hard to reconcile against PS’s stats unless daft are also using weekly lets in their figures? If they are then it would indicate that possibly life is coming back into the Airbnb market compared to the immediate aftermath of the COVID shock.

Just looking at things so far this year I make the median sale prices (DAFT uses average prices) as
Jan - 357
Feb - 357
Mar - 355
Apr - 370
May -345
Jun - 330

Sales are running at a rolling 3 week average of 165 or so per week ( this time last year was around 330 per week so a 50% drop). There are now 4505 properties for sale on MyHome.ie (since January it’s generally been around 4100 - 4200 it’s only started to rise in the last month). This time last year there 5400 for sale so supply is down about 20%. Median asking price is 395k (this time last year it was the same and in fact it has hardly changed over the year having only once hit 400k). The median price achieved this year so far is 356k and it is slowly dropping (I use the cumulative figure as it smooths out the bumps). Sales of new homes are around 20 per week - this time last year they were about 40pw - but they peaked at around 100pw in September and then again in December 2019 through to January 2020.

Average prices based on the PPR are dangerous. I’m not sure if Daft filters out big sales but as an example in March there were 7 sales that totalled 110m and in April there 9 sales that totalled 60m - most of these were marked as multiple property sales but in a couple of cases it was hard to tell and in most of the cases you couldn’t guess how many units were involved.

I look forward to PS figures next week I think they will be interesting.