House prices have risen by 2.4% in the Republic of Ireland since the year began, according to a report. A study by property website Daft.ie shows prices continue to go up, with the average price of a home nationwide now just over €299,000 in the first quarter of the year – an 8.4% increase on the same period last year.
The report shows the average price nationwide is only 19% below the peak seen in Ireland during the Celtic Tiger. Trinity College Dublin economist Ronan Lyons, who authored the report, said: “Inflation in housing prices remains stubbornly high – with Covid-19 disturbing an equilibrium of sorts that had emerged, with prices largely stable in 2019 but increasing since. As has been the case consistently over the last decade, increasing prices – initially in Dublin and then elsewhere – reflects a combination of strong demand and very weak supply.”
Prices rose in cities across Ireland. In Dublin, prices rose by 4% bringing the average price of a house to over €415,000. In Cork, house prices rose by 3.9% to sit at an average of over €318,000. In Waterford, there was an increase of over 9% in prices – with the average home now selling for nearly €219,000.
As of the start of March, the Daft.ie report found only 10,000 homes for sale across the country. That figure is significantly below the average in 2019 of 17,500. Dr Lyons added: “Both new and second-hand supply remain weaker than expected before the pandemic.
“Combined with unexpected strong demand, due to accidental savings during lockdown, this has driven up prices. “Additional supply – of all types of homes, for sale but also market rental and social rental housing – remains the only real solution to solving Ireland’s chronic housing shortage.”
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