House prices nationally rose by an average of 9% during 2024, according to the latest house price report by Daft.ie.
The typical listed price nationwide in the final quarter of 2024 was €332,109, 1.4% higher than in the third quarter of the year and 30% higher than at the onset of the pandemic.
Prices rose for the fourth consecutive quarter in Dublin, where the increase of 9% during 2024 matched the national average and marked the highest rate of inflation seen in the city since late 2017.
Galway city saw a similar increase during the year, while in Limerick city prices rose by 8.2%.
In Cork and Waterford cities, average prices rose by 6.3% during 2024. Outside the five main cities, inflation ranged from 11.1% in Leinster to 5.3% in Connacht-Ulster.
Average list price in Q4 2024
- Dublin €442,909 +9%
- Cork City €347,26 +6.3%
- Limerick City €284,138 +8.2%
- Galway City €389,742 +9%
- Waterford City €247,236 +6.3%
- Rest of the country €284,163 +9.2%
The number of second-hand homes available to buy nationwide on 1 December stood at less than 10,500, down 15% year-on-year and the lowest total ever recorded in a series extending back to January 2007.
“If the goal of policymakers is to ensure stable housing prices, then, this has been the least successful year for policymakers since 2017, when prices rose by roughly the same proportion,” economist at Trinity College Dublin and author of the report Ronan Lyons said.
Speaking on RTÉ’s Morning Ireland, Mr Lyons said those who have mortgages would have fixed those mortgages, leaving “very little incentive” to sell their property.
He said mortgages were fixed for three, five or seven years in 2021 or 2022, meaning those properties will come off fixed rates by 2029.
“That’s the length of time it will take for the second hand market to get back to normal, as things stand,” he said, adding that he believes there will “still be upward pressure” in 2025.
“We’re trading at a much tighter level than five, six, seven years ago, and given that the demand is still there that’s what’s pushing prices up,” he said.
“Aside from tinkering with the fixed rate rules and regulations – the underlying solution is to get more homes built.”
He said 2024 saw the largest increase in listed prices since 2017.
“Unlike earlier in the 2020s, Dublin is now driving price growth, with its rate of inflation ahead of the other cities.
“This is, once again, a story of weak supply and strong demand. With incomes and employment growing, demand for owner-occupied housing is likely growing at close to 5% per year,” Mr Lyons said.
“But while the number of newly built homes being transacted is increasing, it is growing much more slowly than demand.
“Further, the increase in new builds has, in recent quarters, been more than offset by a decline in the volume of second-hand homes coming on to the market,” he said.
While 2022 saw 63,000 second-hand homes listed for sale, there were just 51,000 put on the market during 2024, similar to levels seen during pandemic lockdowns.
Mr Lyons said the new government may look to intervene in the mortgage market, to improve mobility of those with fixed interest rates.
Article Source – House prices rise 9% in 2024 – Daft.ie report – RTE
