Any decrease in house prices brought on by an increase in supply may be offset by cost pressures in the construction sector.

11 comments

  1. Increase in supply doesn’t bring down house prices unless there’s a sudden surplus.

    Every time there’s a new build, the price is higher than the last one built. So every house previously built increases in price too.

  2. It is the secondary market which is driving the current house price increases per the data, which is not impacted by materials cost. So whilst new builds may have the issue mentioned by the headline, the majority of the market will not.

  3. The vast majority of houses brought each year are second hand, so this won’t matter to them(other than doer uppers).

  5. Yep people forget that wood, cement and other stuff like electricity meters and boilers are actually fairly difficult to get at the moment.

  7. I find it mad that construction costs in Ireland are soaring, and in the US they’re collapsing. You’d think with global supply lines prices would even out.

  8. Here is my theory. Good chance Im wrong. We currently have a housing bubble caused by more fuckery in the financial world. Supply is almost meaningless when it comes to current house prices. The gains we have seen from house prices rocketing upwards in the last few years will disappear just as quick.

  10. It’s good that price increases are at least slowing down a bit, even if it is being partially offset by inflation in materials. One particuarly positive sign in the article was this

    >The report points out that construction capacity is growing with greater numbers being employed in the sector and output is on course to increase significantly over the coming years.

    Construction sector shrunk greatly after the last crash and never really recovered, which has been a contributor to why building has been so slow lately. It’s good to see that it is catching up and will hopefully be able to fullfil the demands for housing in the next few years.

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