House Prices in Ireland Surge Amid Severe Property Shortage

Discover the latest Daft.ie House Price Report revealing a 3.8% increase in Q2 2024, with prices soaring by 35% since Covid-19.

House prices in Ireland continue to soar, with a worrying new survey indicating that the trend is likely to persist due to a severe shortage of properties. According to the latest Daft.ie House Price Report, prices increased by an average of 3.8 percent in the second quarter of 2024. The typical listed price nationwide during that period was €340,398, marking a 6.7 percent rise from the previous year and a staggering 35 percent increase since the onset of the Covid-19 pandemic.

Regional variations in price growth were evident, with Dublin experiencing a 4.7 percent increase year-on-year. In contrast, Cork and Waterford cities saw a rise of nearly 10 percent, while Limerick and Galway cities recorded a 12 percent increase. Prices in Leinster (outside Dublin) rose by 6.1 percent, while Munster saw a 10.4 percent increase, and Connacht-Ulster recorded a 6.2 percent rise. Although inflation was prevalent across most regions, there was a slight cooling in Connacht-Ulster compared to previous quarters.

The scarcity of second-hand homes on the market is a key factor driving up prices, with just over 11,350 properties available nationwide as of June 1. This represents an 18 percent decrease from the previous year and is less than half the average number of homes available between 2015 and 2019. Trinity College economist Ronan Lyons, the author of the Daft.ie report, highlighted the impact of limited supply on housing prices, noting that inflation had peaked in late 2021 before cooling down and rising again to 6.7 percent in mid-2024.

Lyons emphasized the correlation between tight availability and price increases, predicting that the trend is likely to continue in the foreseeable future. He pointed out that the tightness in the sales market reflects the impact of significant interest rate hikes, further exacerbating the housing affordability crisis in Ireland.

The housing market in Ireland is facing unprecedented challenges due to a severe shortage of properties, leading to substantial price hikes. The future trajectory of prices will largely depend on how quickly second-hand supply recovers in the coming months.