House prices rose by nearly 8% around the country this year.
The latest Daft.ie Sales Report finds that the average price of a house in Ireland in the last quarter of 2021 was €290,998 – one-fifth below the Celtic Tiger peak.
The biggest increases were recorded in rural areas, with prices rising by an average of 11.5% outside the five main cities.
In Dublin, prices rose by 3.4%, while in Cork, they rose by 5.5% and in Limerick, the increase was 6.4%.
Meanwhile, fewer than 11,500 homes were listed for sale on December 1st – the lowest total recorded since July 2006.
The number represents a fall of one quarter since December 2020.
Meanwhile, the total number of properties listed for sale this year was just over 54,000, which is higher than last year but still well below pre-pandemic levels.
Report author Ronan Lyons said price inflation “remains stubbornly high” but is continuing to cool from its mid-year peak.
“This reflects a combination of unusually strong demand and ongoing weak supply,” he said.
“Demand for homes to buy, which had been strong anyway from the mid-2010s, has received an unexpected boost during the covid19 pandemic, with prospective buyers able to tap into ‘accidental’ savings, as expenditure fell during the lockdowns.
“Meanwhile, both new and second-hand supply remain weaker than expected before the pandemic.”
He said the general health of the housing market remains largely unchanged by the pandemic.
“It is one characterised by weak supply in the face of strong demand,” he said.
“For that reason, additional supply – not just of homes for sale but also of market and social rental housing – remains key to solving Ireland’s chronic housing shortage.”
Average list price and year-on-year change:
- Dublin City: €405,259 – up 3.4%
- Cork City: €313,436 – up 5.5%
- Galway City: €322,543 – up 1.6%
- Limerick City: €234,908 – up 6.4%
- Waterford City: €211,023 – up 7.5%