House price inflation hits 10-year high, according to Daft.ie report

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5 hours ago

Housing price inflation has hit a 10-year high, according to a property website.
Prices rose by an average of 3 per cent across Ireland during the second quarter of 2025, Daft.ie's House Price Report released on Monday said.
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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 10 years since mortgage market rules were introduced.
The surge in Dublin of 12.3 per cent is in line with the average for the rest of the country, whereas in the rest of Leinster, the annual increase in prices is 14.3 per cent.
Inflation is also close to the national average in both Limerick city (12.8 per cent) and Galway city (12.5 per cent).
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In Waterford city, the rate is 15.2 per cent, while in Cork city the increase in prices is slower, at 8.6 per cent.
The average list price in Dublin is €467,913, €369,938 in Cork city and €426,348 in Galway City.
Ireland's limited supply of homes, due to stalled construction during the recession, is blamed for now skyrocketing house prices.
The Government has boosted its target for the homes it aims to build as a result, despite missing its target last year and the housing minister stating this year's target of 41,000 is 'not realistic'.
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The number of second-hand homes available to buy nationwide on June 1st was 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.
Author of the report Ronan Lyons, an economist at Trinity College Dublin, said it was up to policymakers to solve the housing shortage.
'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.
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'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.'