Ireland Home Prices Uptick 3 Percent Nationwide in Q3

Residential News » Dublin Edition | By WPJ Staff | September 30, 2024 8:00 AM ET

According to DAFT.ie, housing prices in Ireland increased by an average of 3.1% nationally during the third quarter of 2024. The typical listed price across the country during this period was €344,848, marking a 6.2% rise compared to the same time last year and a 37% increase since the onset of the COVID-19 pandemic.

While price increases were widespread, Dublin saw the highest percentage gain, with prices rising 4.1% between June and September. This marks the largest three-month increase in the capital since early 2017, pushing prices to more than 6% higher than a year ago. For the first time since 2020, Dublin's annual inflation rate has exceeded the average for Ireland's other four cities. In Cork, Galway, and Waterford, prices in Q3 were around 4% higher than the previous year. However, inflation in Limerick remains the highest at 9.7%, while areas outside the cities saw an average increase of 6.3% over the past year.

The supply of second-hand homes for sale across Ireland continued to shrink, with fewer than 11,900 homes available on September 1st, a 12% drop compared to the previous year. This marks the fifteenth consecutive month of declining supply and sets a new record low for this time of year, surpassing the previous low of 12,900 homes in September 2021, just after the COVID-19 lockdowns ended. The reduction in availability is largely due to fewer second-hand homes entering the market, with just over 51,000 homes listed in the twelve months leading up to September, compared to nearly 57,000 the previous year.

Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, said, "While the volume of new homes being built and bought has largely held up in recent quarters, despite rising interest rates, the same cannot be said of the second-hand market. The number of homes coming on to the second-hand market remains very weak. The resulting scarcity of homes has pushed prices up, especially in Dublin, where new homes are being built. The typical second-hand home bought in Dublin between June and September sold for 7.6% above its listed price, the biggest gap since records began in 2010. Conditions elsewhere are similar, with a record average premium of 5.4% above the listed price nationally."

Lyons further commented, "The slow decline in mortgage interest rates will help the market, as will sitting homeowners coming off fixed-rate mortgages. But these factors are largely outside of policymaker control. The underlying issue remains a lack of homes, of all kinds, and this should remain the focus for policymakers before and after the next election."

Average list price and year-on-year change in major cities, Q3 2024