The majority of people expect property prices to continue to rise over the next three years. The strong rise in prices is being powered by the fact there is so little supply on the market. While house price inflation is also likely to climb to 12 per cent this year.

With the supply so low it is keeping people from wanting to sell their property as they fear there might not be anywhere they can buy after their house is sold. Figures show the number of houses available to buy nationally – as of August 1st – was 31 per cent lower than at the same point last year and 20 per cent lower in Dublin. At this current moment in time there are only 12,700 properties available for sale.

With the supply being so critical right now it is expected that if the low supply in housing persists there could be a 4% – 5% increase in prices over the next 3 years according to a survey that had been carried out by KBC. Demand tends to determine how hot or cold the Irish housing market is. If the current trend persists in this manner it will result in rapid increases in property prices.

The main moderating influence that is likely to lower property prices will be the pick-up in supply, as new home completions are expected to be in the region of 21,000 this year, increasing to 23,000 in 2022 and 26,500 in 2023.

Supply in the second-hand market is also likely to pick up if prices return to normal.