Killarney

<h3> According to the latest residential market review and outlook from leading property advisors DNG, house prices are set to continue rising this year, following the strong growth in values recorded in 2021.</h3>
 At a national level (excluding Dublin) the DNG National Price Gauge (NPG) recorded an increase in the average price of a second hand home of 13.6% last year, a marked acceleration in the rate of inflation compared to 2020 when prices rose by 1.4%. At the national level (including Dublin) the overall rate of price increase last year stood at 12.0%. The NPG, which tracks house prices across the country on a half yearly basis, recorded growth of 5.3% in the six months to December 2021, compared to an increase of 7.9% in the first six months of last year. All regions of Ireland recorded double digit price growth in 2021, except for Dublin (+9.9%). Nationally, the strongest rate of house price appreciation was in the Mid-West region (+17.2%) followed by the Midlands (+14.2%) and West (+13.8%) whilst the South East region saw the lowest rate of growth in prices last year (+11.0%). Outside the capital the highest average price was found in the Mid-East (&euro;349,259) followed by the South West (&euro;279,844).
 Looking at the outlook for the year ahead, the agency forecasts further growth in prices both in Dublin and nationally, with regional price gains set to outstrip those in the capital where nominal values are already elevated, and affordability is more challenged. The agency is forecasting an average uplift in regional markets of 12-13% this year whilst price growth in Dublin will more likely be high single digits, in the order of 6-8%. The factors underpinning the forecasts include continued strong economic and wage growth, the heightened household savings levels seen in 2020-21, the extension of government initiatives for first time buyers announced in the budget, strong demand from this cohort evident in the mortgage approvals data and the prevailing low interest rate environment. On the supply side, whilst the supply of new residential completions is set to increase to around 26,000 units this year, this will still be well below the estimated 30-35,000 new units required each year to meet demand thereby putting upward pressure on prices in the market. &ldquo;Whilst Covid-related issues rightly dominated the news agenda in 2021, housing undoubtedly came a close second, given the emotive nature of the housing debate and the current market dynamics of rising house prices and rents and a shortage of accommodation available to buy or rent, not only in Dublin but across the country.&rdquo;, said DNG&rsquo;s Director of Research Paul Murgatroyd said &ldquo;Price growth was clearly very robust last year across all regions and the factors that drove those increases continue to be evident in the market as we enter 2022. The stock of homes for sale in the second hand market remains very low by historical standards and this, combined with the elevated level of demand, brought about in part by factors linked to changing behaviours throughout the pandemic, will mean further price appreciation will be evident as we progress through the year ahead.&rdquo;

Further rise in house prices forecast for 2022 as average price of a resale home

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