Average Home Sale Price Gap in Ireland Surges to 6.6%

UPDATE: The gap between asking prices and sale prices for homes in Ireland has surged to 6.6%, nearing a record high, according to the latest data. This alarming trend underscores a tightening housing market as the average listed price for homes increased by 5.5% in 2025, now standing at an average of €423,000 for a three-bedroom semi-detached house.

A recent report from Daft.ie reveals that while inflation in Dublin remains lower, with prices rising by just 3.1% year-on-year, regions like Connacht and Ulster experienced a significant spike, with prices soaring by 11.6% during the same period. These asking prices are now 41% above pre-COVID levels and only 10% below the peak observed during the Celtic Tiger era.

Ronan Lyons, an economics professor at Trinity College Dublin, stated, “Despite a modest decline, the market remains very tight.” The number of second-hand homes listed for sale has dropped to just over 53,000, a stark decrease from the early 2023 peak of 63,000 homes, exacerbated by recent interest rate hikes. This decline also marks a 10% drop compared to pre-COVID levels.

On December 1, only 11,551 second-hand homes were available nationwide, an increase of 7% from the previous year, but less than half the average of 26,000 homes available from 2015 to 2019. The housing shortage is particularly acute outside Dublin, where availability has plummeted by 63% compared to the late 2010s, while the capital sees only a 16% reduction.

Lyons emphasized that the pandemic has trapped the housing supply at a significantly lower level, intensifying pressure on home buyers. “A country that is building between 30,000 and 35,000 homes needs to double that total across all segments to meet societal needs,” he added.

As buyers face rising prices and dwindling options, early indications show that transaction prices rose by 7.4% last year, a dip from 8.7% in 2024. This ongoing crisis not only affects the housing market but also reflects broader economic challenges facing many households.

With the housing market tightening further, stakeholders and potential buyers alike are urged to stay informed about these critical developments. As housing prices continue to climb, the urgency for effective solutions grows stronger.

Stay tuned for more updates as this situation develops.