The number of houses available to buy decreased by 20% in the last year, according to the latest Daft.ie House Price Report.
The report for the third quarter of 2023 found there were 12,200 houses available to buy nationwide, compared to 15,500 houses available on the same date last year and 24,200 available in 2019.
In Dublin, there were 2,800 houses for sale in the third quarter, a 30% decrease from the same period last year.
Housing supply in Leinster, Munster and Connacht/Ulster were down 15%, 19% and 20% respectively.
Author Professor Ronan Lyons said while the flow of properties coming onto the market has fallen, it down “only slightly comparing the last year with the previous 12-month period”.
“With supply only down slightly but availability down a lot, demand is holding up far better than might have been expected given the rise in interest rates,” he said.
“The number of homes being built in the country has held up remarkably well, with roughly 30,000 homes expected to be built this year, close to last year’s total.
He noted the second-hand housing market remains very tight following the pandemic.
“With interest rates outside of the control of local policymakers, the other solution is to continue to increase the rate of completions,” Prof Lyons said.
House prices rose by 1.1% nationwide between June and September, representing a 3.7% price increase in the last 12 months.
The typical listed price nationwide in the third quarter of the year was €322,602, roughly 13% below the Celtic Tiger peak.
Prices in Dublin in the third quarter of the year were just 1.4% higher than a year ago, the lowest rate of inflation since prices started to rebound in late 2020.
Prices in Cork city were 1.7% higher year-on-year, while in Galway, Limerick and Waterford cities, the rate of annual increase was much higher, at increases between 3.9% and 4.7%.
Outside the main cities, inflation was typically greater, with year-on-year increases of 4% in Leinster, almost 6% in Munster and just over 8% in Connacht-Ulster.