HOUSING PRICES IN the third quarter of 2023 were 1.1% higher than a year ago, according to the latest Daft.ie House Price Report released today.

This comes after the second quarter of the year marked the first time since mid-2020 that asking prices had fallen in year-on-year terms.

The typical listed price nationwide in the third quarter of 2023 was €322,602, up 3.7% on the previous yar and roughly 13% below the Celtic Tiger peak. 

The number of homes available to buy nationwide on 1 September stood at just under 12,200. this is down over 20% year-on-year, compared to the almost 15,500 available to buy on the same date a year previously. It also remains well below the 2019 average of 24,200.

The fall in availability, which started in the middle of the year, can be seen in all major regions of the country. 

The report noted that trends in house prices differ considerably across the country. 

Prices in Dublin in the third quarter of the year were just 1.4% higher than a year ago, the lowest rate of inflation since prices started to rebound in late 2020. 

In Dublin City Centre, the average asking price was €372,616, while the average asking price was €403,654 in North Dublin City and €468,106 in South Dublin City. 

Similarly, prices in Cork City were just 1.7% higher, year-on-year. The average asking price in Cork City was €337,345. 

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In Galway, Limerick and Waterford cities, the rate of annual increase was higher, at between 3.9% and 4.7%. 

The average asking price in Galway City was €367,283, while in Limerick City it was €262,499 and in Waterford City it was €238,595. 

Outside the main cities, inflation was typically greater, with year-on-year increases of 4% in Leinster, almost 6% in Munster and just over 8% in Connacht-Ulster. 

Commenting on the report, its author Ronan Lyons, economist at Trinity College Dublin, said that “the availability of homes is down over 20% year-on-year, at levels of availability only previously seen during the pandemic”.

“While the flow of properties coming on to the market has fallen, it is down only slightly comparing the last year with the previous 12 month period. With supply only down slightly but availability down a lot, demand is holding up far better than might have been expected given the rise in interest rates,” Lyons said. 

He said that the second-hand sales market “remains very tight”.

“This came about originally because of the pandemic but the market has never fully recovered. With interest rates outside of the control of local policymakers, the other solution is to continue to increase the rate of completions.”

Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.