Is the Irish property market about to boil over?

With year-on year property price inflation climbing above 15 per cent for the first time in seven years, according to data from the Central Statistics Office published this week, the housing market is heating up.

But has it reached boiling point and, if it has, will that boiling point see people being burned again?

Writing in The Irish Times this week, Economics Correspondent Eoin Burke Kennedy pointed out that the property cycle has “three distinct phases: boom, slump, recovery” and he suggested that Ireland was about to enter a “slump phase”.

He pointed to “clear signs” that the Covid-induced price surge has reached a tipping point with higher living costs and higher interest rates now likely to act as a restraint on buyers.

But what will the cycle mean for would-be homeowners in Ireland and what will interest rate hikes coming down the tract mean for mortgage holders, particularly the 300,000 tracker mortgage holders who have benefited from interest rates of little more than 1 per cent for the guts of a decade.

And with supply improving as builders ramp up developments, are the prospects improving for people trying to find a home to call their own?

In the News is presented by reporters Sorcha Pollak and Conor Pope.

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