House prices in Ireland have seen a significant jump, rising by 6.2% in the year leading up to September 2024, according to the latest Daft.ie House Price Report. The surge is even more pronounced when looking at the short-term trend, with prices climbing 3.1% in just the three months from June to September.
The average listed price for a home nationwide now stands at €344,828, a figure that’s a whopping 37% higher than it was at the start of the Covid-19 pandemic. This increase is largely fueled by a shortage in the second-hand housing market, with available homes for sale dropping by 12% compared to last year.
Dublin is feeling the heat more than most, experiencing its largest quarterly price increase since early 2017. House hunters in the capital are now facing prices that are 6% higher than they were just a year ago.
The scarcity of second-hand homes is creating intense competition among buyers. In Dublin, homes are selling for an average of 7.6% above their listed price – the highest premium seen since records began in 2010. This trend isn’t confined to the capital, with a record average premium of 5.4% above the listed price observed nationwide.
While new home construction has remained steady despite rising interest rates, the second-hand market is struggling to keep up with demand. Ronan Lyons, economist at Trinity College Dublin and author of the report, emphasizes that the “underlying issue remains a lack of homes, of all kinds.”
As Ireland gears up for its next election, Lyons urges policymakers to focus on addressing this housing shortage. While a gradual decrease in mortgage interest rates may offer some relief, it’s clear that more comprehensive solutions are needed to cool down this overheating market.
According to The Journal, this housing crunch is affecting communities across Ireland, from bustling city centers to rural counties. As prices continue to climb, the dream of homeownership is becoming increasingly challenging for many Irish residents, making housing a key issue in the national conversation.