House Prices in Ireland have risen by 9% from Q3 2020 – Q3 2021. As the supply of homes remain severely restricted.

Two separate reports by property websites and found a major increase in prices over the past year, while noting that the availability of properties for sale has dropped significantly.

The Daft Q3 house price report shows that the average price nationwide in the third quarter of 2021 was €287,704. This is a total of €24,000 higher than the previous year. This figure is 22% below the Celtic Tiger peak but three quarters above its lowest point in 2012.

Prices in cities are inflating at a much lower rate than rural areas. Dublin saw a 4.9% increase in the year to September, its slowest rate of inflation in a year. In Galway city the rise was 3.1% year-on-year, in Cork city it was 5.8% while in Limerick city it was 8.4%.

Outside the main cities the rate of inflation was significantly higher, jumping by nearly 13% year-on-year. In Mayo and Leitrim Daft found that prices are more than 20% higher than a year ago.

The total number of properties available to buy on 1 September was just below 12,700. This figure is one third lower than the same date a year earlier and a little over half the amount for sale in September 2019.

The market is still starved of supply, with prices being bid-up aggressively by homebuyers. This behaviour is evident in transactions being settled well above asking prices. The government is trying to combat this surge in prices with the housing for all plan, but with a main factor of construction costs being overlooked, it is hard to see how this demand for supply being met.