Asking prices for homes across the country were 2.2% higher between April and June than they were during the same period last year, as the market began to show signs of stabilising.
The MyHome.ie quarterly house price report shows that during the period, the national median price sought for a home was €325,000, an increase of 4.3% on the figure recorded during the previous quarter.
In Dublin, the median asking price stood at €418,000, up 0.6% year-on-year, while outside the capital it was €280,000, an increase of 3.5% on the same three months in 2022.
Produced in association with Davy, the research also found that homes are now changing hands for 1.4% over the asking prices.
This compares with 5-6% one year earlier, in a further sign that the market has weakened.
However, author of the report, Conall Mac Coille, who is Chief Economist at Davy, said there are signs of stabilisation and possibly fresh momentum in the market.
Demand still remains particularly strong, with the value of mortgage approvals at record levels and average time to sale agreed close to historic lows, he claimed.
“Housing demand remains resilient,” he said.
“There were €1.27 billion of mortgage approvals in May, a fresh record high. This represents 11.5% volume growth in the numbers of homebuyers with mortgage approval.”
Average mortgage approval for first-time buyers reached a fresh high in May of €298,600, up 3.5% compared to the same point last year.
“Despite the European Central Bank’s (ECB) rate hikes, homebuyers are still taking on more debt, pointing to upward pressure on house prices in H2 2023,” said Mr Mac Coille.
However, housing starts have also increased 7.4% in the first five months of the year and this has led MyHome/Davy to boost their forecast for housing completions this year from 27,500 to 29,500.
“The reality is that Ireland’s housing market remains exceptionally tight. The average time to sale agreed in Q2 2023 was still close to a historic low of 3.3 months,” said Mr Mac Coille.
“There are currently just 14,000 properties listed for sale on MyHome, still well down from pre-pandemic levels which exceeded 20,000.”
Nonetheless, Mr Mac Coiile said a drop in prices this year is not out of the question.
“Certainly, a fall in Irish house prices in 2023 is still plausible and cannot be ruled out, given the prospect of further ECB rate hikes, but it now looks less likely,” he said.
“We have left our forecast for asking price inflation unchanged at 1.5% through 2023 but have revised up our forecast for housing completions to 29,500.”