House prices have fallen in the first quarter of the year for the first time in a decade due to a "completely altered" housing market.
There was a 0.3% drop in listed house prices between December of last year and March this year, according to the latest Daft.ie report. The last time this happened was in 2013 when the country was still reeling from global economic crash.
Author of the report and Associate Professor in Trinity College, Ronan Lyons, said the drop shows how much the housing market has changed in the last 12 months due to global macroeconomic changes such as the Ukraine war, inflation and rising interest rates. He said: "A year ago, listed prices nationally rose by 2.9% in the first three months of 2022 - the seventh consecutive quarter that prices had risen.
Read more: Dublin City Council gets tough on city centre hotel 'overconcentration'
"It continued a pattern that extended all the way back to the early 2010s, which saw listed prices jump in the first quarter following a relatively quiet final quarter of the year. Prices continued to rise in the second quarter - and indeed by more, by 3.6%.
"But the invasion of Ukraine and the associated shift in macroeconomic conditions, especially the rise in inflation and in interest rates, has completely altered conditions in the market. Prices were effectively static in the third quarter of the year and fell by 0.5% nationally in the last three months of the year."
Prof Lyons added that the drop in prices in the final quarter of 2022 was "not unusual" but added that the outlook on the market has changed. He said: "Just as prices tended to rise in the first quarter, they tended to fall in the last three months of the year, as the sales market wound down ahead of a new calendar year.
"But sentiment had changed: survey respondents no longer expected strong price growth in the next 12 months (or beyond)." The supply of homes in Dublin has increased compared to this time last year.
There were 2,700 homes for sale in Dublin on March 1 which is a 26% increase on the same date last year.
READ NEXT:
Popular 200-year-old Dublin Pub to be demolished under MetroLink plans
'Tsunami' of hotels sparks call for 'aparthotel' development in Dublin 8 to be refused
Attacks on Gardai 'quite bad' but guns aren't the answer, says Dublin MEP
'I travelled through Dublin Airport during cold snap mayhem - here is what you need to know'
Government issue statement on schools opening amid 'bitter' cold snap
To get the latest news to your inbox, sign up to the Dublin Live Newsletter.
