House-price inflation soars to 10-year high, with market ‘starved of supply'
Prices rose nationally by an average of 3pc during the second quarter of this year.
With the average listed price now at more than €357,000, prices are 12.3pc higher than this time last year and 40pc higher than at the start of the pandemic.
The rate of inflation in the housing market is now at its highest level in the decade since mortgage market rules were introduced.
Ronan Lyons, the author of the Daft report and economist at Trinity College Dublin, said this level of inflation in the market had not been seen since the first quarter of 2015.
There are simply too few homes on the market at the moment
Mr Lyons said the market now was different from 10 years ago – inflation had been led by Dublin and surrounding areas then, but now there were double-digit increases in prices 'more or less across the board'.
'The underlying reason is largely unchanged. There are simply too few homes on the market at the moment,' he said.
'On top of an insufficient number of new homes being built, there are also not enough second-hand homes being traded.'
While the market is ultimately 'starved of supply' and 'there is little to be cheery about' in the report at first glance, Mr Lyons said there were signs of a move in the right direction – there were 12,000 homes on the market on June 1, up from fewer than 9,300 on March 1.
Dublin's inflation figure stands at 12.3pc, in line with the average for the whole country. The rate is slightly higher in the rest of Leinster, with prices 14.3pc higher than a year ago.
In Galway city (12.5pc) and Limerick city (12.8pc), the figure is close to the national average. It is higher in Waterford city (15.2pc) and lower in Cork city (8.6pc), where price increases are slower.
Mr Lyons said the sharp rise in interest rates had 'weighed heavily" on the market
In the year up to June 1, more than 51,000 second-hand homes were put on the market. This compares with 67,000 homes put up for sale in 2019 before the disruption caused by the Covid-19 pandemic.
With the market recovered from the impact of the pandemic, Mr Lyons said the sharp rise in interest rates had 'weighed heavily on the market'.
'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,' he added.
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Irish Daily Mirror
an hour ago
- Irish Daily Mirror
House price inflation in Ireland hits 10-year high, report shows
Housing prices nationally rose by an average of three per cent during the second quarter of this year, according to the latest House Price Report. The typical listed price nationwide in the second quarter of the year was €357,851, 12.3 per cent higher than a year previously and 40 per cent higher than at the onset of the Covid-19 pandemic. The current rate of inflation in the market is the highest seen in the ten years since mortgage market rules were introduced. The surge in inflation is relatively broadly based, with the Dublin figure (12.3 per cent) in line with the average for the rest of the country. In the rest of Leinster, the annual increase in prices is 14.3 per cent. Inflation is also close to the national average in Galway city (12.5 per cent) and Limerick city (12.8 per cent). In Waterford city, the rate is higher again (15.2 per cent) while in Cork city (8.6 per cent) the increase in prices is slower. The strong increases in housing prices are related, once again, to very tight supply. 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 and less than half the pre-covid average of almost 25,000. Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, 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.' Average list price and year-on-year change:
The Irish Sun
4 hours ago
- The Irish Sun
Stark financial reality of Irish housing crisis as price inflation hits 10-year high & Govt urged ‘to address failure'
HOUSE price inflation has soared to its highest in ten years. The House Price Report from The typical price of a house around the country was found to be €357,851, 12.3 per cent higher than at this time last year and 40 per cent higher than at the beginning of the In In both The rate of inflation in Waterford city is 15.2 per cent, while the same figures are lower in Read more in Property The average cost of a home in Dublin was €467,913, while in Galway city it was €426,348 and in Cork it was €369,938. The current market And while the Government has boosted its homebuilding target this year, Housing Minister James Browne said last week that the aim of 41,000 is 'not realistic'. Trinity College economist and author of the report Ronan Lyons said it is time for the Government to step in and create a plan for producing more homes. Most read in The Irish Sun He explained: 'The fastest increase in housing prices since mortgage market rules were introduced a decade ago highlights the importance of addressing Ireland's chronic 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. SECOND-HAND SUPPLY ISSUE '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.' He added: 'Policymakers have to address their failure to recognise and provide the framework for enough new homes each year.' 1 House price inflation has soared to its highest in ten years Credit: Getty
Irish Times
5 hours ago
- Irish Times
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.
