House prices in Ireland have risen by an average of 9.5 percent over the last year, according to a report by a property website.
The latest sales report from Daft. ie shows that prices increased 3.8 percent on average between March and June, the largest three-month gain in almost two years.
The report also showed price hikes were much higher in Cork, Limerick, Waterford, and Galway compared to Dublin.
Prices in Cork were 9.4 percent higher than a year previously, rising to almost €331,000, while prices in Limerick city were up 11.1 percent to just under €250,500 on average.
The biggest increases in urban housing prices were in Galway (13 percent) and Waterford cities (13.5 percent) to around €352,600 and €226,600 respectively.
In Dublin, prices in the second quarter of 2022 were 6.6 percent higher than a year previously. The average price of a home in the capital is now €429,000, 95 percent above its lowest point, according to the report.
The number of homes available to buy on June 1st stood at just over 12,400, up from an all-time low of just 10,000 three months earlier.
The report says there are now slightly more homes available to buy in Ireland than a year ago, the first time since mid-2019 that this has been the case.
The report’s author, Trinity College Dublin economist Ronan Lyons, said there were some signs that both sides of the market may be turning.
“Ireland’s housing market has been characterised for a number of years by strong demand, boosted recently by unexpected savings, but supply has been steadily weakening,” he said.
“On the supply side, the number of homes listed over the last 12 months has increased by 30 percent since early 2021, although it still remains 15 percent below the peak in 2019, while construction of new homes is set to reach a post-Celtic Tiger high this year.
“On the demand side, the rise in interest rates, prompted by inflation, will feed through to housing demand in due course.
“At the same time, sentiment among those active in the housing market has eased back, with expected inflation in housing prices over the next year below 1 percent, compared to over 5 percent three months ago,” he said.
Expected inflation is one of the key drivers of immediate housing demand, so if prospective buyers feel they have more time to choose, they may take that opportunity, Mr. Lyons added.
“Supply in Dublin – and in the rest of Leinster – has started to increase again. There were almost 5 percent more homes for sale in Dublin on June 1st this year compared to last year and the equivalent figure for the rest of the province was 10.8 percent more homes.
“After over two years of rapidly falling supply, it seems that the market around the capital has turned a corner in terms of availability,” he said.