Sir, – Cliff Taylor discusses many novel factors impacting property prices, such as Covid-induced relocations, investor fund activity, local authority purchases and so on, but fails entirely to mention the most obvious traditional factor – inflation ("Will the price of houses just keep on rising?", Business, Opinion, February 17th).
With a steady, moderate annual inflation rate of 3.5 per cent, the price of any commodity will double after 20 years.
The average price of a house in Dublin in the year 2002 was €259,381, while in 2022 it is €506,667 – actually slightly less than double.
With any market there will be ups and downs in the short to mid-term, but a gradual overall increase over the longer term is generally accepted as normal.
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So house prices appear to be very close to what one might have predicted 20 years ago.
We can check again in 2042 and see if the average is a million. – Yours, etc,
JOHN THOMPSON,
Phibsboro,
Dublin 7.