Ireland Real Estate Prices Rise for Seventh Consecutive Month

Ireland's real estate market sees prices increase for the seventh month in a row, driven by a shortage of second-hand homes.

Real estate prices in Ireland have continued to rise for the seventh consecutive month, with the pace of increases accelerating due to a shortage of second-hand homes. According to the Central Statistics Office (CSO), prices surged by 7.3% in the year to March, up from a 6.2% increase in the previous year. Dublin saw a 7.2% increase in prices, while areas outside of Dublin experienced a 7.4% rise. The Mid-West region, which includes Clare, Limerick, and Tipperary, saw the largest increase at 12.3%, while the Border region saw a more modest 2.9% rise.

Nationally, prices rose by 0.4% in March compared to the previous month. The median price paid for a residential property in the year to March was €333,000, with the lowest price in Leitrim at €168,000 and the highest in Dún Laoghaire-Rathdown at €620,000. The most expensive Eircode area was A94 in Blackrock, South County Dublin, with a median price of €720,000, while the least expensive was F45 in Castlerea, Co Roscommon, at €135,000.

The increase in prices is attributed to a lack of available properties and government support schemes for buyers, such as the Help-to-Buy scheme and the First Home scheme. The European Central Bank's decision to cut lending rates next month, coupled with a mortgage price war among lenders, is expected to further fuel price rises in the housing market.

In March, there were 3,314 home purchases filed with Revenue, a nearly 20% decrease from the previous year. Existing dwellings accounted for 82% of the purchases, down 20% from the previous year. Prices of new dwellings in the first quarter of this year were 8.4% higher than the same quarter last year, while prices of second-hand homes were 5.7% higher.

Overall, the housing market in Ireland continues to experience price increases driven by a combination of factors, including supply shortages and government support for buyers. The upcoming rate cut by the ECB and ongoing mortgage price competition are expected to further impact the market in the coming months.