HOUSE PRICES ARE now higher than the peak of the Celtic Tiger boom, reflecting a 4.4% increase over the last twelve months.

The latest Residential Property Price Index, published by the Central Statistics Office (CSO) today reflect that the cost of a home is now higher than it was during its peak in 2007.

Social Democrats TD Cian O’Callaghan has blamed the Government’s “failure to get to grips” with the housing crisis, adding that owning a home is turning into a “pipedream for many”.

The median price for a home, as of December 2023, is €327,000. Prices in Dublin increased 2.7% in the last year while prices outside Dublin increased by 5.7%. 

The lowest median price was in Longford, at €165,000, while the highest median price was in Dún Laoghaire-Rathdown in Dublin, at €622,250.

Ian Lawlor, managing director of Lotus Investment Group, said more supply is entering the market, which will be good news for prospective buyers as he claims more homes will keep inflation “in check”.

Lawlor added that first-time buyers must “take advantage” of State financial supports available to them when buying their home. He, however, highlighted particular issues in planning permission delays which “continues to dog” the market.

O’Callaghan painted a much more stark view of the housing market for prospective buyers when reacting to the figures today. The party’s housing spokesperson said the CSO’s findings reflect a “grim picture” of the housing market for future homeowners.

He claims measures need to be taken in order to make it cheaper for the cohort to buy or rent a home, such as the introduction of specific zoning guidelines for affordable housing.

O’Callaghan said Vienna, Austria has had success with when attempting to create cheaper housing and claimed that zoning for affordable housing ensures that enough affordable homes are built and remain cost effective in the future.

Trevor Grant, Chairperson of the Association of Irish Mortgage Advisors, said that the increasing house prices will be the source of frustration and worry for many first-time buyers.

He noted that scarcity in the housing market means prices will continue to go up this year and voiced particular concern over the rate of increases for regional homes. 

A total of 5,063 houses were purchased at market prices in December, a 2.9% decrease when compared with figures from December 2022. However, 2023 had the highest volume of transactions since 2012, when prices were at their lowest.