Supply shortages see average house price up 7% over last 12 months

Persistent shortages has seen supply of second hand homes in seven countries fall by over 50%

Compared to July 2019, before the Covid-19 pandemic, when approximately 23,165 second-hand properties were advertised for sale, the number of second-hand homes advertised for sale this summer has declined by a significant 36.5%.

House prices across Ireland continue to rise significantly with property values increasing by 7.3% in the last 12 months, new data from Sherry Fitzgerald shows. 

In it's latest bi-annual analysis, the estate agent found the average value of second-hand homes rose by 1.8% in the three months between July and September, highlighting "continuing challenges" in the market. 

Outside of the capital, however, average values rose by 2.6% over the three-month period, bringing the increase over 12 months to 8.3%, with strong price inflation outside Dublin being driven by significant supply side shortages. Inside the capital, the pace of house price inflation was slower, at 1.1% in the quarter, bringing the annual increase to 6.5%.

In July 2025, just 14,715 second-hand properties were listed for sale nationwide, representing a mere 0.7% of Ireland’s private housing stock, Sherry Fitzgerald found. Although there has been an increase in the level of advertised stock from July 2024, when just 12,784 second-hand homes were available for purchase, the shortage of second-hand stock remains acute, the estate agent added. 

Compared to July 2019, before the Covid-19 pandemic, when approximately 23,165 second-hand properties were advertised for sale, the number of second-hand homes advertised for sale this summer has declined by a significant 36.5%. Several counties, including Kerry, Tipperary, Carlow, Offaly, Cavan, Leitrim and Longford have seen a more than 50% decline compared to before the pandemic. 

The estate agent added that of these seven counties, five have also had low levels of new dwelling completions over the past number of years, when compared to population. Recent years has seen construction activity largely concentrated in Dublin and the Greater Dublin Area in recent years, typically accounting for approximately 50% of all completions.

The report also found approximately 21,488 residential transactions made by household buyers in the last six months, an increase of 2.2% from the first half of 2024. This slight uptick was driven by strong performance in the new homes market, with transactions up 19% when compared to 2024.This correlates to just 751 additional new homes transacting this year when compared to last, bringing the total to 4,698 new homes sold in the first six months of the year.

Transaction activity in the new homes market was concentrated in Dublin and the Mid-East in the first half of the year, accounting for 57% of all activity in the sector. In the second-hand residential market, transaction activity has fallen by 1.7%, with 16,790 transactions in this sector of the market in the first half of 2025. 

Marian Finnegan, CEO of Sherry FitzGerald, said the current housing situation remained urgent, stating, "The sustained shortage of available housing continues to place upward pressure on values, exacerbating challenges for individuals and families seeking suitable homes."

"It is clear that the residential market remains undersupplied. Though the policy changes and other interventions made by the government in recent months are welcomed, it will take some time for the effects of these to be felt. 

"The upcoming Budget provides an opportunity for further incentives to increase the delivery of new homes in areas where they are needed most.”