House prices in Ireland rise to eight-year high

House prices in Ireland have risen sharply, reaching an inflation rate of 3.7% in the first quarter of 2025. This is the highest level seen in eight years. According to new data from Daft.ie, the average price of second-hand homes is now over €346,000. This price is 11.6% higher than a year ago and 35% higher than at the start of the COVID-19 pandemic. The increase in prices is due to a significant drop in the number of second-hand homes for sale. The report noted that there are currently fewer than 9,300 second-hand homes available, which is a 17% decrease from last year. This is the lowest number recorded since 2007. The tight supply of homes is contributing to rapid price increases, especially in Dublin and Leinster, where prices are up by 12.2% and 13.4%, respectively. Economist Ronan Lyons from Trinity College Dublin pointed out that the current shortage in the second-hand market is a major problem. He indicated that even though sales of new homes are increasing, the number of second-hand homes is at its lowest in nearly two decades. He also highlighted that rising interest rates have encouraged current homeowners to lock in their mortgage rates, reducing available homes for sale. Governor of the Central Bank of Ireland, Gabriel Makhlouf, expressed concerns about government housing policies. He emphasized the need for effective planning as a key challenge for addressing the housing crisis. Makhlouf advised the government to review existing policies to ensure they work well together before implementing new ones.