{"id":238887,"date":"2025-12-18T08:11:33","date_gmt":"2025-12-18T08:11:33","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/238887\/"},"modified":"2025-12-18T08:11:33","modified_gmt":"2025-12-18T08:11:33","slug":"is-now-the-time-to-buy-a-house-or-should-you-wait-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/238887\/","title":{"rendered":"Is now the time to buy a house or should you wait? \u2013 The Irish Times"},"content":{"rendered":"<p class=\"c-paragraph paywall \">A possible tech stock bubble; crunching affordability; a slowdown in price growth; an expected increase in the supply of housing. Is now really the time to buy a <a href=\"https:\/\/www.irishtimes.com\/tags\/property\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/property\/\">property<\/a>? Or should you wait?<\/p>\n<p class=\"c-paragraph paywall \">After several years of strong price growth, it is certainly an expensive time to buy. Figures from the <a href=\"https:\/\/www.irishtimes.com\/tags\/central-bank\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/central-bank\/\">Central Bank<\/a> show that in the first six months of this year the average loan for a <a href=\"https:\/\/www.irishtimes.com\/tags\/first-time-buyers\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/first-time-buyers\/\">first-time buyer<\/a> was \u20ac318,730, and the average <a href=\"https:\/\/www.irishtimes.com\/tags\/mortgages\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/mortgages\/\">mortgage<\/a> term was 30 years.<\/p>\n<p class=\"c-paragraph paywall \">At the same time, <a href=\"https:\/\/www.irishtimes.com\/tags\/renting\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/renting\/\">rents<\/a> continue to reach new highs.<\/p>\n<p class=\"c-paragraph paywall \">Given that buying a home \u201cis one of the biggest financial decisions you\u2019ll make in your life\u201d says Rachel McGovern<b>, <\/b>deputy chief executive of <a href=\"https:\/\/www.irishtimes.com\/tags\/brokers-ireland\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/brokers-ireland\/\">Brokers Ireland<\/a>, you\u2019ll want to make the right one.<\/p>\n<p class=\"c-paragraph paywall \">So, as the year comes to an end, many putative home buyers may be wondering should they stick or twist. <\/p>\n<p class=\"c-paragraph paywall \">But what\u2019s the best decision? Buy now? Or could you get more for your money if you wait?<\/p>\n<p><b>Property prices<\/b><\/p>\n<p class=\"c-paragraph paywall \">For some, the biggest influence on their decision might be the direction of property prices. <\/p>\n<p class=\"c-paragraph paywall \">Evidence would suggest that property price growth is starting to slow down. Prices rose by 5.3 per cent in the 12 months to the end of September in <a href=\"https:\/\/www.irishtimes.com\/tags\/dublin\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/dublin\/\">Dublin<\/a>, and by 9.4 per cent outside the capital. <\/p>\n<p class=\"c-paragraph paywall \">But in September 2024, prices were growing at an annual rate of 11 per cent in Dublin. While price growth is steady outside of the capital, one would typically expect any slowdown to start in the area of most activity and subsequently spread outwards.<\/p>\n<p class=\"c-paragraph b-it-article-body__interstitial-link\">[\u00a0<a aria-label=\"Open related story\" class=\"c-link\" href=\"https:\/\/www.irishtimes.com\/business\/2025\/11\/21\/sole-borrowers-make-up-nearly-two-thirds-of-apartment-mortgages\/\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">Sole borrowers make up nearly two-thirds of apartment mortgagesOpens in new window<\/a>\u00a0]<\/p>\n<p class=\"c-paragraph paywall \"><a href=\"https:\/\/www.irishtimes.com\/tags\/goodbody-stockbrokers\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/goodbody-stockbrokers\/\">Goodbody Stockbrokers<\/a>, in its recent housing chartbook, is forecasting price growth of 4.9 per cent for 2026, and 3.7 per cent for 2027 \u2013 some way off 2024\u2019s growth of almost 9 per cent. <\/p>\n<p class=\"c-paragraph paywall \">Indeed Nick Charalambous, managing director of Alpha Wealth, says agents are now starting to see some softening in the high-end \u20ac1 million-plus market.<\/p>\n<p class=\"c-paragraph paywall \">\u201cIt\u2019s starting to become a little more difficult at that level,\u201d he says.<\/p>\n<p class=\"c-paragraph paywall \">Still, any rate of growth means that properties are getting more expensive each month. <\/p>\n<p class=\"c-paragraph paywall \">Goodbody says that prices \u201cremain underpinned by strong demand and low supply despite a moderation in the pace of growth in Dublin\u201d.<\/p>\n<p class=\"c-paragraph paywall \">According to the latest CSO survey, the median price of a home purchased nationally in the 12 months to September was \u20ac380,000. If price growth outside Dublin stays around the 9 per cent level, you could expect to pay an additional \u20ac34,200 for this house in a year\u2019s time.<\/p>\n<p>Is it cheaper to rent or buy?<\/p>\n<p><img decoding=\"async\" data-chromatic=\"ignore\" alt=\"\" class=\"c-image\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/12\/RTJ562OVQJD3PANROE3H7S5YWU.jpg\"  width=\"800\"\/>MarianVejcik <b>Two-bed apartment, Dublin 2 <\/b><\/p>\n<ul>\n<li>Buy: \u20ac2,400<\/li>\n<li>Rent: \u20ac1,883<\/li>\n<\/ul>\n<p><b>Three-bed home, Cork city<\/b><\/p>\n<ul>\n<li>Buy: \u20ac1,202 <\/li>\n<li>Rent: \u20ac2,000<\/li>\n<\/ul>\n<p><b>Five-bed house in Co Wicklow<\/b><\/p>\n<ul>\n<li>Buy: \u20ac2,744 <\/li>\n<li>Rent: \u20ac2,286 <\/li>\n<\/ul>\n<p>Source: Daft.ie, based on monthly repayments <\/p>\n<p class=\"c-paragraph paywall \">In Dublin, D\u00fan Laoghaire-Rathdown had the highest median price of \u20ac675,000 in the most recent survey. Based on Dublin growth rates remaining steady, this typical property could cost a further \u20ac33,750 in a year\u2019s time, and almost \u20ac735,000 by 2027, based on Goodbody\u2019s forecasts.<\/p>\n<p class=\"c-paragraph paywall \">So, holding off on a purchase can come at a price.<\/p>\n<p class=\"c-paragraph paywall \">On the other hand, there is no guarantee that prices will continue to rise, and there are certainly risks to the downside.<\/p>\n<p class=\"c-paragraph paywall \">The <a href=\"https:\/\/www.irishtimes.com\/tags\/economic-and-social-research-institute\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/economic-and-social-research-institute\/\">Economic and Social Research Institute<\/a>, for example, based on data from the middle of 2024, suggests that property prices are overvalued by somewhere in the region of 8 to 10 per cent, raising concerns about the \u201cprospect of a painful correction such as that witnessed between 2007 and 2012\u201d.<\/p>\n<p class=\"c-paragraph paywall \">Unemployment is also edging upwards, and a severe unemployment shock, and a loss of confidence, could send house prices downwards.<\/p>\n<p><b>Cost of financing<\/b><\/p>\n<p class=\"c-paragraph paywall \">Holding off on a property purchase may also make sense if you think that interest rates \u2013 and thus the cost of buying a home \u2013 may fall. <\/p>\n<p class=\"c-paragraph paywall \">After all, it\u2019s important to note that unless you buy with cash, the cost of your finance can have almost as much of an impact on the overall transaction.<\/p>\n<p class=\"c-paragraph paywall \">Consider a home bought with a \u20ac500,000 mortgage and a \u20ac50,000 deposit. Over 30 years, at a steady interest rate of 3.5 per cent, the total cost of funds will be \u20ac308,280 \u2013 so that \u20ac550,000 house will actually have cost you in excess of \u20ac900,000. But if that interest rate was only 2 per cent, then the interest cost would be \u20ac211,218 \u2013 and if rates were 5.5 per cent, your interest bill alone would be almost \u20ac525,000 \u2013 which means that the house will have cost you in excess of \u20ac1 million. <\/p>\n<p class=\"c-paragraph b-it-article-body__interstitial-link\">[\u00a0<a aria-label=\"Open related story\" class=\"c-link\" href=\"https:\/\/www.irishtimes.com\/business\/2025\/12\/03\/biggest-obstacle-for-home-buyers-is-cost-of-property-as-importance-of-ber-ratings-rises\/\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">High rents mean meeting mortgage payment no longer the major concern for aspiring homebuyersOpens in new window<\/a>\u00a0]<\/p>\n<p class=\"c-paragraph paywall \">So, interest rates matter. At present, the best rates on the market are fixed rates starting at about 3.2 per cent. <\/p>\n<p class=\"c-paragraph paywall \">Of course, banks are no longer as tied as they once were to <a href=\"https:\/\/www.irishtimes.com\/tags\/european-central-bank\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/european-central-bank\/\">European Central Bank<\/a> rates, with much of their funding now coming from bank deposits. <\/p>\n<p class=\"c-paragraph paywall \">So, mortgage rates aren\u2019t as \u201csensitive\u201d, as Charalambous says, as they might have been to interest rate hikes \u2013 or reductions \u2013 in the past.<\/p>\n<p><b>Opportunity costs of waiting<\/b><img decoding=\"async\" data-chromatic=\"ignore\" alt=\"Based on figures from Daft.ie from earlier this year, it still makes financial sense to buy rather than rent in most parts of the country.  Photograph: Enda O'Dowd\" class=\"c-image\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/12\/LGSYK4MFFRFZREYDI7L4AUL5KM.jpg\"   width=\"800\" height=\"534\"\/>Based on figures from Daft.ie from earlier this year, it still makes financial sense to buy rather than rent in most parts of the country.  Photograph: Enda O&#8217;Dowd <\/p>\n<p class=\"c-paragraph paywall \">If you hold off on a purchase, you\u2019ll still have to live somewhere. And this can cost. <\/p>\n<p class=\"c-paragraph paywall \">If you still live rent-free at home \u2013 or at amenable rates \u2013 this cost may not be too much of a consideration. <\/p>\n<p class=\"c-paragraph paywall \">But if you\u2019re renting privately you will likely be paying a considerable amount.<\/p>\n<p class=\"c-paragraph paywall \">\u201cA pro of putting your money into a mortgage rather than \u2018dead money\u2019 of rent is that it\u2019s going towards repayments on a property that you\u2019ll own at the end of the day,\u201d says McGovern. <\/p>\n<p class=\"c-paragraph paywall \">According to the <a href=\"https:\/\/www.irishtimes.com\/tags\/residential-tenancies-board\/\" target=\"_self\" rel=\"nofollow noopener\" title=\"https:\/\/www.irishtimes.com\/tags\/residential-tenancies-board\/\">Residential Tenancies Board<\/a> rent index for the first quarter of this year, for example, rents for a new tenancy for a three-bed house stand at \u20ac1,378 outside of Dublin, and \u20ac2,395 in Dublin. <\/p>\n<p class=\"c-paragraph paywall \">While rents for an existing tenancy might be lower, they nonetheless offer a good guide, and suggest that outside of Dublin your family could be spending more than \u20ac16,000 on rent \u2013 which might otherwise have been ploughed into a mortgage. In Dublin, this will be more than \u20ac28,000. <\/p>\n<p class=\"c-paragraph paywall \">Over a couple of years, this can stack up. And Goodbody is also forecasting continued rental growth, of 3.6 per cent for 2026 and 3.1 per cent for 2027.<\/p>\n<p class=\"c-paragraph paywall \">Not only that, but putting the money into your mortgage might also be cheaper.<\/p>\n<p class=\"c-paragraph paywall \">Based on figures from Daft.ie from earlier this year, it still makes financial sense to buy rather than rent in most parts of the country. <\/p>\n<p class=\"c-paragraph paywall \">For example, a three-bed house in Dublin 18 would cost about \u20ac2,500 a month to rent. However to buy, you would be looking at mortgage repayments of just \u20ac2,000 a month. This is savings of \u20ac500 a month\/\u20ac6,000 a year \u2013 with some of those repayments also going towards an asset you will ultimately own.<\/p>\n<p class=\"c-paragraph b-it-article-body__interstitial-link\">[\u00a0<a aria-label=\"Open related story\" class=\"c-link\" href=\"https:\/\/www.irishtimes.com\/business\/2025\/10\/24\/last-12-months-saw-highest-number-of-first-time-buyer-mortgages-since-2007\/\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">Last 12 months saw highest number of first-time-buyer mortgages since 2007Opens in new window<\/a>\u00a0]<\/p>\n<p class=\"c-paragraph paywall \">Similarly, a two-bed apartment in Dublin 2 will cost about \u20ac2,400 a month in rent \u2013 or just \u20ac1,883 to buy. In Cork city, you\u2019ll pay about \u20ac2,000 to rent a three-bed home \u2013 but just \u20ac1,202 to buy it, while in Limerick city, a two-bed house will cost \u20ac1,662 to rent \u2013 but just \u20ac870 to buy.<\/p>\n<p class=\"c-paragraph paywall \">But this is not the case everywhere. Back to Dublin 18, and a four-bed house will be cheaper to rent (\u20ac3,167) than buy (\u20ac3,835), while in Dublin 6, a four-bed house costs \u20ac3,449 to rent \u2013 but \u20ac5,119 to buy. <\/p>\n<p class=\"c-paragraph paywall \">And a five-bed house in Co Wicklow will cost \u20ac2,744 a month to own \u2013 but just \u20ac2,286 to rent. <\/p>\n<p class=\"c-paragraph paywall \">There is also the possibility, if you have managed to accumulate a sizeable deposit, of investing this. Over the past 12 months for example, the S&amp;P is up by about 12 per cent. If you had put your \u20ac50,000 into this, you could have grown it by about \u20ac6,000.<\/p>\n<p class=\"c-paragraph paywall \">While markets look uncertain heading into the new year, there are always investment opportunities. <\/p>\n<p class=\"c-paragraph paywall \">On the other hand, as Charalambous notes, while paying rent may be a waste \u2013 \u201cit still gives you some flexibility\u201d.<\/p>\n<p><b>Your own circumstances<\/b><img decoding=\"async\" data-chromatic=\"ignore\" alt=\"Central Bank figures show that the average first-time buyer is now 36, and the average trader-up is 43. Photograph: iStock\" class=\"c-image\" loading=\"lazy\" src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/12\/FOBVOINKJNBPFJVZ5KKIFUDPAQ.jpg\"   width=\"800\" height=\"533\"\/>Central Bank figures show that the average first-time buyer is now 36, and the average trader-up is 43. Photograph: iStock <\/p>\n<p class=\"c-paragraph paywall \">Ultimately then, your decision will most likely come down to your own circumstances. <\/p>\n<p class=\"c-paragraph paywall \">\u201cThere shouldn\u2019t really be a sense of trying to time the market, it\u2019s notoriously difficult to do so,\u201d advises Charalambous. \u201cTrying to save \u20ac20-\u20ac30,000 on the price of a property could end up costing you more on rent in the interim.\u201d<\/p>\n<p class=\"c-paragraph paywall \">So can you afford to buy a home that has some longevity and won\u2019t see you forced to move again in the short to medium term? <\/p>\n<p class=\"c-paragraph paywall \">\u201cWe\u2019ve all learned from the Celtic Tiger,\u201d says McGovern, calling to mind buyers trapped in one-bed apartments due to plunging prices. <\/p>\n<p class=\"c-paragraph paywall \">So, buyers should bear in mind that trading up may not be an option in a short period of time, depending on how markets are.<\/p>\n<p class=\"c-paragraph paywall \">\u201cIt\u2019s about not buying something that will not suit your needs in the medium term,\u201d she advises.<\/p>\n<p class=\"c-paragraph b-it-article-body__interstitial-link\">[\u00a0<a aria-label=\"Open related story\" class=\"c-link\" href=\"https:\/\/www.irishtimes.com\/business\/2025\/11\/28\/mortgages-approvals-hit-highest-level-in-three-years\/\" rel=\"noreferrer nofollow noopener\" target=\"_blank\">Mortgages approvals hit highest level in three yearsOpens in new window<\/a>\u00a0]<\/p>\n<p class=\"c-paragraph paywall \">Charalambous agrees.<\/p>\n<p class=\"c-paragraph paywall \">\u201cThe worst thing is buying the wrong property \u2013 it\u2019s a large asset and can be illiquid. A decision in the short term mightn\u2019t suit the long term\u201d.<\/p>\n<p class=\"c-paragraph paywall \">Your age is also a consideration. <\/p>\n<p class=\"c-paragraph paywall \">\u201cOne of the pros of buying as soon as you can, if you\u2019re getting a mortgage, is that obviously the term of the mortgage can be a little bit longer, which mean repayments will be lower,\u201d says McGovern. <\/p>\n<p class=\"c-paragraph paywall \">Central Bank figures show that the average first-time buyer is now 36, and the average trader-up is 43. <\/p>\n<p class=\"c-paragraph paywall \">For affordability reasons (to keep your monthly repayments lower), you may need to borrow over a longer 30-year term \u2013 but a bank may be unlikely to let you borrow beyond your retirement age.<\/p>\n<p class=\"c-paragraph paywall \">So then, if your company has a retirement age of 66, your age is going to be a key consideration when it comes to making a decision. <\/p>\n<p class=\"c-paragraph paywall \">On the other hand, if you\u2019re hoping to buy in your own area, waiting may mean a boost in supply on the back of the latest Government housing plan \u2013 and possibly lower prices.<\/p>\n<p class=\"c-paragraph paywall \">\u201cIf supply catches up with demand, you\u2019d hope to see that reflected in housing prices,\u201d says McGovern. However, she adds that while supply will \u201cprobably\u201d catch up with demand, it also probably won\u2019t be in the short term.<\/p>\n<p class=\"c-paragraph paywall \">If you haven\u2019t been prudent with your finances \u2013 such as being able to show evidence of saving, not running up careless debt or overdrafts, etc \u2013 it may also make sense to postpone a purchase. <\/p>\n<p class=\"c-paragraph paywall \">\u201cTo give yourself the best chance of getting a mortgage approval, people may have to look at how they\u2019re spending their money,\u201d says McGovern.<\/p>\n","protected":false},"excerpt":{"rendered":"A possible tech stock bubble; crunching affordability; a slowdown in price growth; an expected increase in the supply&hellip;\n","protected":false},"author":2,"featured_media":238888,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[6294,9,10,632,52,18,13,14,24078,6,8752,21681,19,17,11,12,15,16,20097,107128,9650,22736,5,1658,4097,7,8],"class_list":{"0":"post-238887","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-apartment","9":"tag-breaking-news","10":"tag-breakingnews","11":"tag-central-bank","12":"tag-dublin","13":"tag-eire","14":"tag-featured-news","15":"tag-featurednews","16":"tag-first-time-buyer","17":"tag-headlines","18":"tag-housing-crisis","19":"tag-housing-demand","20":"tag-ie","21":"tag-ireland","22":"tag-latest-news","23":"tag-latestnews","24":"tag-main-news","25":"tag-mainnews","26":"tag-mortgage","27":"tag-mortgage-application","28":"tag-mortgages","29":"tag-new-to-the-market","30":"tag-news","31":"tag-property","32":"tag-renting","33":"tag-top-stories","34":"tag-topstories"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115739564225890924","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/238887","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=238887"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/238887\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/238888"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=238887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=238887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=238887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}