House prices rose by 7.3 per cent in the 12 months to October as demand for homes continued to outstrip supply.
The headline rate was down from 7.5 per cent the previous month but still well ahead of average wage growth, meaning the purchasing power of buyers is continuing to be squeezed.
The latest residential property price index, compiled by the Central Statistics Office (CSO), indicated that house prices in Dublin rose by 5.4 per cent rose in annual terms in October while those outside Dublin rose by 8.9 per cent.
The median price or middle value of a dwelling purchased in the 12 months to October was €381,000.
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The highest median price paid for properties was in Dún Laoghaire-Rathdown at €675,000 while the lowest median price was €190,000 in Donegal.
The CSO said its national index, measuring house price changes, reached the value of 202.3 in October, which is 23.7 per cent above its highest level at the peak of the property boom in April 2007.
Dublin residential property prices are 8.9 per cent higher than their February 2007 peak, while residential property prices in the rest of the State are 26.2 per cent higher than their May 2007 peak, it said.
“Today’s figures confirm what we are seeing on the ground. Prices continue to rise, particularly outside Dublin, reflecting the demand that is being felt right across the country,” Mike Stack, solicitor and co-founder of property start-up Beam, said.
“But these figures alone mask a deeper issue. Too many transactions are collapsing or dragging on for months, eroding buyer confidence and placing vendors at risk of renegotiations or lost sales,” Mr Stack said.
“Around 15 per cent of deals fall through, and nearly a third of these failures are caused by last-minute planning, compliance, or title issues that could have been addressed earlier,” he said.
