Due to rising interest rates and energy costs.

For the first time in three years, Dublin house prices are beginning to fall. This news comes from the REA Average House Price Index, who attributes the falling prices to the rising energy costs and interest rates; such factors are deterring people from entering the market for the first time.

REA spokesman Barry McDonald said this of the recent figures:

“Following a frenetic start to the year, the market has slowed somewhat, with affordability having a definite effect on demand.

“This is illustrated by Dublin’s postcode districts, where prices average €495,833, seeing a slight fall back on its end-September figure for the first time since 2019.

“There is no doubt that throughout the capital and commuter areas, interest rate rises have had an impact on buyer and sellers’ decision making, leading to viewer numbers decreasing and a longer time to reach sale agreed.

“We are still seeing a lot of investors selling their properties and there is a feeling that more landlords may put their properties on the market once the ban on evictions is lifted in March.”

According to the Irish Mirror, first-time buyers now make up 73% of the market in Dublin.

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