Housebuyers are having to pay up to 20% more for a house than just a year ago thanks to a dearth of available property and a spike in demand.
That's according to Daft.ie's latest house price report which finds that on average houses are costing 13% more than a year ago, but in some areas, including Co Kerry and Co Waterford, up to 21%.
"The country desperately needs tens of thousands of new homes a year and for decades," said the report's author Ronan Lyons.
"Rather than cap the construction of new homes, as the Government’s new housing need and demand assessment tool seeks to do, policy must do an aboutface and look to boost the building of homes where they are needed."
The spike is far greater outside Dublin than in the capital. Daft.ie said in its report for the second quarter of 2021 that in Cork, Limerick and Waterford cities, listed prices are 14.3% to 15.5% higher than a year previously.
Elsewhere the report found:
— Counties Waterford, Kerry and Wexford, saw the largest increases at more than 20%.
— Prices in Dublin jumped by 8.4% in the year to June, the fastest rate since early 2018.
— The average price for a house is now €284,000 nationally, up €34,000 in one year.
Fewer than 12,500 houses are available to buy at the moment, down by over 6,000 from the same period last year, according to Daft’s analysis. That's a third fewer than the same period last year and just half the amount for sale in June 2019.
A lack of new housing is compounded by the lack of secondhand homes for sale, it said.
MyHome.ie said national annual asking price inflation is now at 13%, with would-be homeowners “increasingly desperate” to secure properties.
“Double-digit levels will heap even more pressure on the Government to address the housing crisis,” MyHome.ie said.
It calculated the national asking price at €303,000, a rise of 6.7% in just one quarter.
Sinn Féin housing spokesman Eoin Ó Broin accused the Government of "sitting on its hands as house prices spiral out of control".
"It has been clear for a very long time that left to its own devices, the private sector can not and will not deliver the volume of affordable homes that are needed. Only direct state investment in large-scale affordable housing delivery will fix this."
He said an entire generation is now locked out of affordable housing.
The Institute of Professional Auctioneers and Valuers (IPAV) said the current market with supply and demand is "the most seriously out of kilter it has been in living memory".
Chief executive Pat Davitt said: "The situation demands an unprecedented response from government, not piecemeal measures aimed at the symptoms of the problem, which have in the past resulted in rent, and house price hikes.
"This crisis has been going on for far too long and people on average incomes are unable to acquire homes at a time when interest rates have never been so low, and the recent introduction of 20- and 30-year fixed interest rate mortgages."