House prices in regional cities increasing as much as 12.5%, well above the national average

House prices in Cork, Limerick, Waterford, and Galway are increasing between 9.3% and 12.5%, versus an average elsewhere of 6.7%.

House prices in regional cities are rising significantly faster than the national average. 

In the regional cities of Cork, Limerick, Waterford, and Galway, prices increased between 9.3% and 12.5%, according to the Daft.ie House Price Report.

Whereas, average price increases were 6.7% in the last year, taking the cost of buying a home to €330,398 nationwide.

House prices in cities in the last year went from: 

• Dublin City: €453,671 – up 4.7%; 
• Cork City: €363,845 – up 9.3%; 
• Limerick City: €292,253 – up 12.5%; 
• Galway City: €402,885 – up 12.2%; 
• Waterford City: €258,199 – up 9.9%. 

The number of second-hand homes available to buy nationwide on June 1 was 11,350, down 18% year on year and less than half the 2015-2019 average of almost 25,000.

Daft.ie says that since the start of the year, fewer than 12,000 second-hand homes have been available to buy at any one time.

Report author Ronan Lyons, economist at Trinity College Dublin, said: "The tightness in availability has put upward pressure on housing prices.

"Where it goes next will depend on how fast second-hand supply recovers."

He added: "Over the past  20 years, a clear pattern has emerged in both sale and rental markets: When availability is tight, prices are pushed upwards.

“Availability in the sales market has been consistently tight since the start of the year and thus it is not surprising that prices nationally recorded their largest three-month increase since 2020.

"In part, tight availability of second-hand homes reflects the impact of significant interest rate increases.

"As rates come down again, and in particular as sitting homeowners come off fixed-rate mortgages, supply should improve.

"This, however, is likely to take time and thus tight conditions may continue for some time."

Despite soaring prices, demand for properties has been illustrated by buyers sleeping in their cars for a chance to snap up the first 30 properties to go on sale at a development in Cork.

Up to 1,000 people showed up on Saturday to view two showhouses on the new Bayly development near Douglas village, Cork.

The first phase of viewings and sales saw people queuing to choose from mainly three-bed semi-detached houses, on sale from €445,000, and four-bed townhouses, from €560,000.

People who slept in their cars outside the €200m residential development were quick to agree contracts for sale on Saturday.

Psychiatrist Ranjoth Singh, 38, said he had pre-registered his interest early.

But after arriving at around 11.10am on Saturday, with his wife, Parvin, and 21-month-old son, Taran, he was told all the properties for sale had either sold or were likely to be.

"The only option left to me was to join the list of people who could move up the queue in the coming weeks if anybody who said they were going to buy cancelled,” he said.