House price inflation slowed to a three-year low of 3.9 per cent between July and September as affordability pressures and higher interest rates weighed on demand.
That’s according to the latest survey from property website MyHome, which is owned by The Irish Times Group.
It found that asking prices nationally declined by 1.4 per cent in the third quarter compared with the previous three months.
The company said “affordability remains stretched” with the median (middle value) sold price for properties listed on its website now at €412,000. This was 7.7 times average annual pay of €54,000.
RM Block
The Irish property market is undergoing something of a reset in the face of higher borrowing costs, persistent supply shortages and changes to the rental rules.
MyHome’s latest barometer, compiled in conjunction with Bank of Ireland, found asking prices in Dublin rose at an annualised rate of 2.1 per cent in the third quarter while those outside the capital rose at a rate of 4.8 per cent.
The median asking price for newly-listed properties nationally was €390,000 in the third quarter while in Dublin it was €480,000.
There was a modicum of good news for prospective buyers with MyHome noting that homebuilding in Ireland hit a new post-crash record of 38,000 homes built in the year to June, enough to accommodate 100,000 people.
[ Ireland records one of lowest rates of house price inflation in euro zoneOpens in new window ]
This exceeded population growth, which was 67,000, for the first time in the series.
“This – along with a 12.5 per cent year-on-year increase in homes listed for sale on MyHome – is positive news for homebuyers,” it said.
The number of properties listed for sale on MyHome at end of last month was 14,630. It also noted there have been 10,400 new listings for sale on MyHome since June, which is up 5.3 per cent year-on-year.
However, it predicted that existing home sales was likely to contract for a fourth consecutive quarter.
“The rate of asking price inflation continues to slow, the number of properties for sale on MyHome is rising, and homebuilding has picked up,” Bank of Ireland chief economist Conall MacCoille said.
“All of these factors point to positive news for homebuyers. It still makes more financial sense to buy rather than rent, with rental yields still outpacing mortgage rates,” MacCoille said.
[ What is behind the slowdown in Ireland’s property prices?Opens in new window ]
The typical joint income of first-time buyers in 2025 was €95,000, purchasing a property worth €408,000, equivalent to four times’ their income, he said.
MacCoille forecast 39,600 new home completions in 2026, rising to 42,000 in 2027.
“This is still a far better outlook than many commentators had suggested just 12 to 18 months ago,” he said.
The report also included an analysis of the impact of Building Energy Ratings (Ber) on price, compiled in conjunction with the Sustainable Energy Authority of Ireland.
It showed that the value of a typical home rises by 2.7 per cent for each step on the scale – with maximum increase of 10-13 per cent going from C-rated to A-rated home.
MyHome managing director Joanne Geary said the report represented good news for homebuyers but noted that there was still a wide discrepancy between the first-time buyer and mover markets.
“First-time buyer transactions are up by 12 per cent year-on-year while mover transactions have fallen by 1.2 per cent,” she said.
