Irish house price inflation eased to 5.5% in July, marking the lowest annual increase since January 2024. According to Central Statistics Office data, the national median house sale price stood at €399,999, even as monthly price growth accelerated by 0.8%.
Irish residential property prices cooled to a two-and-a-half-year low during the summer, offering a slight reprieve for prospective buyers navigating a strained market. The Central Statistics Office reported that annual price growth dropped to 5.5% in July, down from 5.6% in June. That figure marks the slowest annual rate of increase since January 2024, when inflation registered at 5.4%.
Regional Divergence and Median Prices Across Ireland
The national median sale price for a residential property settled at €399,999 in July. Regional disparities remained stark across the country. Dún Laoghaire-Rathdown recorded the highest median price in the country at €684,411, alongside the highest house price growth within the capital at 6%.
Outside the capital, property prices increased by 6.4% annually in July, matching the rate seen in June. The Border region—encompassing Cavan, Donegal, Leitrim, Monaghan, and Sligo—saw the fastest regional growth at 11%, while the Mid-West experienced a more modest 4.4% rise. At the micro-market level, the A94 Eircode area covering Blackrock stood out as the most expensive Eircode area with a median price of €850,500, while Castlerea in Roscommon offered the lowest at €158,500.
Market Activity and the First-Time Buyer Landscape
Transaction volumes filed with Revenue told a busier story than the softening inflation rate might suggest. The total value of homes filed with Revenue reached €2.17 billion in July, reflecting a 5.3% increase compared to July of the previous year and a sharp 19.1% jump from June’s €1.82 billion figure. First-time buyers accounted for 2,035 purchases filed during the month, marking an 8.5% increase over the 1,876 transactions recorded in the same period last year.
Trevor Grant, chairman of the Association of Irish Mortgage Advisors, noted that the easing inflation offers a welcome development for buyers struggling to secure a foothold on the property ladder. However, he cautioned that the relief will likely prove insufficient for many aspiring homeowners.
“While the rate of house price growth is easing, let’s not forget that house prices are still rising and inflation for housing is higher than it is in many other areas.”
Trevor Grant, Association of Irish Mortgage Advisors
Grant also pointed out that July is traditionally a quiet period for property transactions, warning that the cooldown could reverse as the autumn market accelerates. Mortgage brokers have already reported a high volume of ground-level inquiries from interested buyers since September began, with an estimated full-year house price inflation rate anticipated by industry observers.
Interest Rates and Supply Pressures Facing the Market
Broader economic headwinds continue to complicate the housing outlook. Genevieve McGuirk, chief executive of the Institute of Professional Auctioneers & Valuers, described the CSO figures as representing only a slight lessening
in inflation pressures. She highlighted that rising interest rates could intensify competition for buyers who are already struggling against cash purchasers, higher earners, and State bodies.
Those borrowing costs reflect recent monetary policy shifts. The European Central Bank increased key interest rates in June and again last week in response to euro area inflation pressures driven by energy shocks. Rachel McGovern, deputy chief executive at Brokers Ireland, warned that lenders typically become more risk-averse in a rising interest rate environment, which may lead to stricter lending terms or the withdrawal of certain financial products.
On the supply side, estate agents report that while new-home completions have increased, the supply of second-hand homes remains acutely constrained. This imbalance continues to generate severe price pressures in specific segments. Furthermore, the Central Bank recently revised its forecasts downward for new home completions for the current and following years, pointing to a broader slowdown in housing commencements that threatens to keep market conditions tight as autumn trading gets underway.