Today, average home prices are more than € 27,500 higher than they were a year ago, with price increases becoming more pronounced outside urban areas.
The latest quarterly sales report by Daft.ie, which covers the second quarter of this year, shows a 9.5pc national price increase compared to 12 months ago.
Average home prices rose from € 284,313 in the same period in 2021 to € 311,874, just 16% below the Celtic Tiger peak.
Widely recognized as the leading barometer of the Irish housing market, the quarterly Daft.ie report analyzes home sales trends and provides a comprehensive review of activity within the sector over a specific time frame.
Between March and June, prices rose by an average of 3.8%. This is the most important three-month rise in almost two years.
Rural home prices are still experiencing the largest rise, but the gap between rural and urban housing inflation continues to close.
Outside the city, prices for the year to June rose 11.4%, down from the peak inflation rate of 16.8% a year ago. The biggest rises in urban home prices were Galway, which rose 13%, and Waterford, which rose 13.5%.
In Dublin, price volatility was 6.6% year-on-year, compared to 3.4% at the end of 2021. The price of cork was 9.4% higher than the previous year, but in Limerick it was up 11%.
In Ireland, you can now buy slightly more homes than you could buy 12,400 homes on June 1st a year ago. This is the first time since mid-2019.
Housing supply deaths sank to a record low of only 10,000 three months ago.
Increased availability is driven by increased housing supply in Dublin. In Dublin, inventory for sale is up to 4.5% year-over-year.
Ronan Lyons, report author for Daft.ie, an economist at Trinity College Dublin, said there are signs that the market is improving.
“The Irish housing market has been characterized by strong demand over the years and has recently been boosted by unexpected savings, but supply is steadily weakening.
“There are some signs that both sides of the market may be turning.