House price inflation hits highest levels in a decade
House prices inflation has hit its highest levels in 10 years, with the typical listed price 12.3% more than a year ago.
The typical listed price nationwide stands at €357,851, with the latest Daft.ie House Price Report released on Monday showing prices rose by an average 3% in the second quarter of 2025. Average prices are now 40% higher than at the onset of the pandemic.
The number of second-hand homes available to buy nationwide on June 1st stood at close to 12,100. This is largely unchanged from the figure a year ago but less than half the pre-covid average of almost 25,000.
Across Munster, prices rose by an average of 4.4% in the second quarter of 2025, following an even larger 4.9% increase in the first quarter. On June 1st, there were almost 3,200 second-hand homes for sale in Munster, up substantially from the March figure but still down two thirds on the pre-covid average.
Average house listing price in Cork city increased by 8.6% to €369,938 while across Cork county it stood at €325,999. The average listing price of a one-bedroom apartment in Cork city stood at €179,000 over the second quarter of 2025 while a three-bedroom semi-detached house in Cork city stood at €309,000.
In Kerry, the average listing house price rose 14.8% to €311,204 while in Co Waterford, prices rose 6.7% to €339,276, and rose 15.2% to €276,420 in Waterford city. In Co Limerick, asking prices rose 14.6% to €297,336 and rose 12.8% to 311,086 in the city. In Clare, prices were up 10.1% to €277,365, while in Tipperary average prices sought rose 13.6% to €283,197.
In Dublin, prices were up 12.3% with asking prices highest in South County Dublin at €718,098.
'The fastest increase in housing prices since mortgage market rules were introduced a decade ago highlights the importance of addressing Ireland's chronic and worsening housing shortage,' said Trinity College economist Ronan Lyons, the author of the report.
'The substantial increases over the past year in almost all parts of the country are linked to the lack of second-hand supply. This in turn is related to the increase in interest rates earlier in the decade,' said Mr Lyons.
The typical transaction price in the second quarter of 2025 was 6.3% above the listed price, the report showed. 'The second quarter of 2025 saw the highest level of 'market heat' - as measured by the premium paid by buyers above the listed price - than at any other time since the start of 2010,' the report stated. Market heat is greatest in Dublin, where the transaction price is typically 8.5% above the list price, the highest in any region since 2010, up from 5.7% in the same three month period last year. In Munster, market heat sits at 6.7%, 4.3% in Leinster and 4.8% in Connacht-Ulster.
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Irish Times
an hour ago
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House price inflation reaches 10-year high as market remains ‘starved' of supply
Irish annual house-price inflation reached a 10-year high in the past three months, said on Monday, as the market remains 'starved' of supply despite 'tentative' signs of a nascent recovery in the volume of second-hand homes being sold in Dublin . Listed home prices were, on average, 12.3 per cent higher in the second quarter of the year than in the same period in 2024, the property website said in its latest house-price report. This is the highest rate of inflation since the first quarter of 2015, a spike that prompted the Central Bank of Ireland to introduce its mortgage lending limits, said Ronan Lyons, associate professor of economics at Trinity College Dublin and author of the report. However, he said that while the 2015 spike in prices was largely concentrated in Dublin and its environs, the current period of skyrocketing house price inflation is 'far more broadly based'. READ MORE Apart from Connacht-Ulster, prices are now climbing by double-digit percentages in every other region, Daft said. Home prices in the midlands were 16.5 per cent higher in the second quarter compared with the same period last year. Excluding Dublin, prices in Leinster were 14.3 per cent higher than in the second quarter of 2024. In Munster, the annual rate of house-price inflation surged to 11.9 per cent, which Daft said was the steepest rate of increase since a 14 per cent spike in the first 15-or-so months of the Covid-19 pandemic, up to the middle of 2021. Across Dublin, meanwhile, average house prices surged by 12.3 per cent over the 12 months to June, Daft said. The median price of a newly built home in Dublin between October 2024 and March 2025 was €444,000, up 10 per cent in one year. A healthy market is probably above 30,000, but at least these latest figures show a step in the right direction — Ronan Lyons The current spike is being driven by a shortage of properties – both newly constructed and second-hand – coming to market, Mr Lyons said. The supply of second-hand homes has been particularly weak since the European Central Bank began lifting interest rates in a bid to contain soaring consumer price inflation across the euro area in July 2022. 'Those increases were well-flagged, giving existing homeowners time to fix interest rates – but fixing, of course, reduces mobility,' Mr Lyons said. 'In 2024, just 50,000 homes were put up for sale, putting the market much closer to its Covid-era low than the pre-Covid average.' However, he said there are some early signs that the second-hand market in Dublin is beginning to turn a corner as interest rates continue to fall. While the volume of second-hand homes put up for sale was down again in the second quarter across much of the Republic, it grew by a modest 3 per cent in Dublin. [ Rent pressure zone changes will be painful for tenants, Central Bank warns Opens in new window ] 'Ultimately, the market is still starved of supply,' said Mr Lyons. 'But the total number of homes for sale on June 1st was over 12,000, compared to below 9,300 on March 1st. A healthy market is probably above 30,000, but at least these latest figures show a step in the right direction.' Central Statistics Office figures published last week revealed that house prices grew at an average annual rate of 7.5 per cent in April amid ongoing supply shortages and surging demand fuelled by Government incentives and expectations of further interest rate cuts. Meanwhile, The Irish Times reported on Friday that the Government is discussing a delay to its new housing plan until after the summer. Senior Government figures said the new plan could not be completed until the publication of a review of how the State is going to fund its multi-year infrastructure delivery programme, which is now expected in late July.
Irish Independent
2 hours ago
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House-price inflation soars to 10-year high, with market ‘starved of supply'
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RTÉ News
7 hours ago
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House asking prices rose by average of 12% in last year
Asking prices for houses have risen by an average of 12.3% to €357,851 in the past year, according to the latest House Price Report. The report notes that this rate of house-price inflation is the highest since the Central Bank's mortgage-lending rules were introduced in 2015. The rules, which are still in effect, limit the amount of money homebuyers can borrow based on their incomes - as well as the loan-to-value ratio. The property website said asking prices nationally increased by 3% between April and late June of this year, and are now 40% higher than at the outset of the Covid-19 pandemic in 2020. According to the report, since this time last year asking prices in Dublin have gone up in line with the national inflation figure of 12.3% (to €467,913), while house prices in Limerick city (+12.8% to €311,086) and Galway city (+12.5% to €426,348) have gone up by a similar figure. However, the research suggests Waterford city asking prices are 15.2% higher year-on-year at €276,420, with the increase for Cork coming in at 8.6% (to €369,938). Daft said the strong increases in asking prices for houses are related to very tight supply. It notes the number of second-hand homes available to buy across the country at the beginning of June was around 12,100, with this figure largely unchanged from a year ago and less than half the pre-covid average of almost 25,000. Commenting on the findings, report author and Trinity College Dublin economist Ronan Lyons said: "The fastest increase in housing prices since mortgage market rules were introduced a decade ago highlights the importance of addressing Ireland's chronic and worsening housing shortage. "The substantial increases over the past year in almost all parts of the country are linked to the lack of second-hand supply. This in turn is related to the increase in interest rates earlier in the decade. "As interest rates come down and mortgage-holders come off their fixed rate terms, the picture for second-hand supply will improve. "There are already some tentative signs in Dublin of an increase in second-hand supply. Nonetheless, the second-hand market is only part of the solution. Ultimately, policymakers have to address their failure to recognise and provide the framework for enough new homes each year."
