House prices rose 9.5% annually in second quarter, Daft.ie report says

Dublin house price inflation doubled over the past six months while values rose at faster rates in Cork and Limerick, according to the latest report from property website Daft.ie.

In its latest analysis of the market, Daft found that asking prices for houses rose 3.8 per cent through the second three months of this year to an average of €311,874.

That figure was 9.5 per cent more than during the same period in 2021, Daft said, while the second-quarter jump was the biggest three-month gain in almost two years.

In Dublin, the increase over the 12 months to June was 6.6 per cent to €429,384. This compared with a rise of 3.4 per cent at the end of last year, indicating that values continued to accelerate in the capital in the first half of this year.

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Asking prices in Cork were 9.4 per cent higher than a year previously at €330,871, while those in Limerick climbed 11.1 per cent to €250,421.

Galway recorded asking price rises of 13 per cent to €352,605, while Waterford topped the league with an advance of 13.5 per cent to €226,635. In the rest of the country, asking prices rose 11.4 per cent to €261,657.

On June 1st, there were slightly more than 12,400 homes for sale in the Republic, almost a quarter higher than the all-time low of 10,000 recorded just three months earlier.

Daft said there are now slightly more homes for sale in the State than a year ago – “the first time since mid-2019 that has been the case”.

House hunters in Dublin are benefiting from much of this, as the number of homes for sale in the capital was up 4.5 per cent since last year.

Those in Leinster also have greater choice than last year, as the number of homes in the province, which includes the greater Dublin area, rose 10.8 per cent.

However, the overall number of dwellings listed for sale over the last 12 months was below a peak hit in 2019.

Daft predicted that the number of new homes built in the Republic will reach a new post-bubble-era high this year.

Trinity College Dublin economist and report author Ronan Lyons noted there were signs that the market may be turning. Supply is increasing, aided by new home construction, he said.

“On the demand side, the rise in interest rates, prompted by inflation, will feed through to housing demand in due course,” Mr Lyons added.

Pat Davitt, chief executive of the Institute of Professional Auctioneers and Valuers, questioned whether interest rate rises would hit house price inflation. He argued that with pent-up demand, a growing population, excessive rents and slow construction, “prices could stay elevated through a cycle of interest rate rises”, depending on the extent of the rises.