HOUSE PRICES HAVE increased by 6.2% in the year to September, and by 3.1% between in the quarter between June and September.
That’s according to the latest Daft.ie House Price Report for Q3 2024.
It found that the typical listed price nationwide in the third quarter was €344,828.
That’s 6.2% higher when compared to the same period a year earlier, and 37% higher than at the onset of the Covid-19 pandemic.
The report also found that the number of second-hand homes available to buy nationwide on 1 September stood at less than 11,900 – that’s down 12% year-on-year and is the fifteenth month of contracting supply.
It’s also less than had the 2015-2019 average of 24,500 homes available to buy.
Increases in house prices in the third quarter of the year were most pronounced in Dublin, where prices rose by 4.1% between June and September.
It’s the largest quarterly increase in the capital since early 2017 and means house prices in Dublin are on average 6% higher than a year ago.
Meanwhile, in Cork, Galway and Waterford cities, prices in the third quarter were roughly 4% higher than a year ago.
Annual inflation in Limerick city remains higher though, at 9.7%, while the average increase outside the cities in the year to Q3 was 6.3%.
South County Dublin is the most expensive place to but a home, with average prices of €708,464, followed by south Dublin City on €498,533.
On the other end of the scale, Co Leitrim is the cheapest place to purchase a home with average listings of €203,863, followed closely by Co Leitrim on €206,857.
In Co Leitrim, house prices jumped by 11.7% in the year to September, but only by 3% in Longford.
Meanwhile, the largest year-on-year increase in list prices was seen in Co Donegal, where a 12.4% annual increase has put house prices to an average of €239,489.
On the other end of the scale, the smallest annual increase was seen in Kilkenny, where average house prices rose 0.7% to €308,431.
Commenting on the report, 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.”
He noted that 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.
Lyons said conditions are similar elsewhere are similar, with a record average premium of 5.4% above the listed price nationally.
While Lyons said the “slow decline in mortgage interest rates will help the market”, 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”.
Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.
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