Figures from property website Daft.ie show that asking prices for houses in the second quarter (Q2) of this year fell slightly compared with the same period a year earlier.

The fall of 0.5% represented the first annual drop in house prices since mid-2022, according to Ronan Lyons (Associate Professor in Economics at Trinity College Dublin).

The decline of 0.6% in Dublin was the first annual fall in the region since early 2020. 

The national average asking price in Q2 was €309,648.

The figures also show, however, that prices in the second quarter rose by 2.4% compared with the first quarter.

Rise ‘not trivial’

In a commentary accompanying the report, Lyons describes this as “not a trivial increase”, adding that it is the first time since mid-2022 that prices have increased quarter-on-quarter.

“Whether the latest quarterly figure represents a temporary bounce, after three weak quarters, or a resumption of strong upward pressure, remains to be seen,” the economist says, adding that an “incredibly strong” labour market is translating into higher demand.

“But with higher interest rates, the gap between underlying demand and effective demand grows,” he states.

‘Market heat’

The total number of properties available to buy on 1 June was just over 13,000 – roughly 5% up on the same date last year, but still well below the 2019 average of 24,000.

The report also measures ‘market heat’ – the difference between the asking price and the eventual selling price. This indicates that the market has cooled this year.

Lyons points out that, last year, all areas of the country were selling at a premium above the listed price. Now, however, there is no difference between listed and transacted prices in three regions (Leinster, Connacht and Ulster), with only small premiums in Dublin and Munster.