A continuing squeeze on the supply of homes boosted property prices by 7 per cent in the three months to the end of June, new figures show.
Property website MyHome.ie said house sellers sought an average asking price of €395,000 in the second quarter.
Its quarterly assessment pointed to strong demand and “persistently inadequate supply” for the latest rise in the cost of buying a home.
“The best that can be said about Ireland’s housing market is that the supply situation isn’t getting materially worse,” it said in a report published on Monday.
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“At end-June 2025 there were 12,563 properties listed for sale on MyHome, up slightly, by 1 per cent, compared with the same period of 2024.”
MyHome tracks asking prices, which is the price at which homes are first offered for sale on the market.
The report described the housing market as “very tight”.
Conall Mac Coille, Bank of Ireland chief economist and the report’s author, predicted house building this year will fall short of the 50,000 to 60,000 new homes needed annually to counter the supply crisis.
“Attention should focus on difficult problems surrounding building costs and the viability of apartment development in Ireland over the long term,” he argued.
However, the report noted that official figures show the number of sales is rising.
So far this year, 22,000 homes have changed hands, an increase of 2 per cent, according to the Property Price Register, compiled by the Revenue Commissioners.
Those properties sold for an average of €445,000 each, noted MyHome, which is owned by The Irish Times.
Its report, published in association with Bank of Ireland, showed that over the three months to the end of June, properties sold for 7.5 per cent more than the asking price sought by sellers.
Those asking prices averaged €395,000 nationally. In Dublin, sellers sought €495,000 in the three months to the end of June, 5.1 per cent more during the same quarter in 2024.
In the rest of the Republic, owners upped their demands by almost 8 per cent to €340,000 on average, the figures show.
MyHome does not expect Dublin’s slower rate of inflation to last long as buyers ended up paying 9 per cent more than asking prices, indicating tough competition for homes.
Regional prices include the capital’s commuter belt in counties Kildare and Meath, where asking prices rose 8.3 per cent, and in Co Wicklow where vendors sought 9.6 per cent more than during the same period last year.
Recent easing of rules governing how much banks can lend to homebuyers contributed to increased demand and added between €15,000 and €20,000 to prices, Mr MacCoille said.
MyHome’s figures followed Saturday’s Community Action Tenants’ Union protest in Dublin where demonstrators said that owning a home had become “completely inaccessible”.
Rents averaged €1,670 per month at the end of 2024, up 5.5 per cent on the year, while the recent Consumer Price Index showed they increased 5.2 per cent in the 12 months to May, MyHome noted.
Joanne Geary, the company’s managing director, noted that the risk of an EU-US trade war erupting as a result of President Donald Trump’s tariff threats had not dented the Irish property market.
“As ever, we need to focus on what we can actually control, which means continuing efforts to significantly increase our national stock of properties, and urban apartments in particular,” she said.
Rival website Daft.ie recently reported that house prices rose 12.3 per cent in a market “starved of supply”. Estate agent, Sherry FitzGerald calculated that the number of homes to rent fell by 43,000 over the last five years.
