Ireland's house prices see staggering rise – with one big surprise about Dublin

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House prices countrywide have risen by €20,000 in one year – almost 8% – with the largest increases being felt outside the capital.

The average house price has now risen to €276,000 from €256,000 over the same period last year.

The average national listed price of housing rose by 7.6% in the year to March 2021, according to the latest Daft.ie House Price Report.

The rise marks the second quarter in a row where prices were nearly 8% higher than a year previously, roughly twice the rate of inflation seen during 2018 and 2019.

The average sale price nationwide in the first quarter of 2021 was €275,751, up 68% from its lowest point in early 2013 but still one quarter below the Celtic Tiger peak.

In Dublin, prices rose by 6.9% in the year to March 2021, but the largest increases were surprisingly seen in the counties surrounding Dublin and in the other cities.

In Cork, Galway, Limerick and Waterford cities, listed prices were between 11% and 12% higher in the first quarter of this year than a year previously.

In Leinster (outside Dublin), they were 12.4% higher on average. Conversely, in Munster, Connacht and Ulster, outside the city areas, there were also increases albeit more muted price growth with annual increases of close to 4% in Munster and the three Ulster counties and just 1% in Connacht.

Ronan Lyons, economist at Trinity College Dublin and report author, said: “The figures in this latest Daft.ie report confirm that the impact of Covid-19 on the sale market was a massive shock to supply, with seemingly far less impact on demand.

“The total number of homes listed for sale in the twelve months to February nationwide was just 45,700, down a third on the previous 12-month period. This sudden collapse in supply – at a time when demand has held up remarkably well – has converted into sharp upward pressure on prices.”

Mr Lyons added that the findings highlight the importance of supply in determining market outcomes and is a reminder that, even when the pandemic subsides, the need for a substantial volume of new homes to be built each year will remain.

The total number of properties available to buy on March 1 was just under 12,000, the lowest figure recorded since the rise of advertising properties for sale online.

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A group of Anti-Lockdown protesters clash with Gardai) in Grafton Street, Dublin, during Level 5 Covid-19 lockdown. On Saturday, Fabruary 27, 2021, in Dublin, Ireland.

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This represents a year-on-year fall of 40% nationwide, although the stock available for sale in Dublin has fallen by less than the national average, while stock for sale in Leinster (outside the capital) is down by nearly one half.

Source: Dublin News