House price growth continued in April, May and June with the national asking price rising by 1.7% in the three month period, while prices were up 6.1% on the year. 

According to the latest house price survey from MyHome.ie, the rate of increase was higher in Dublin with prices up 2.3% over the three months, and 10.4% on the year.

The average asking price nationwide is €202,000, while in Dublin it is €282,000, according to today's figures. 

MyHome.ie also noted that cash buyers still account for over 50% of transactions in the housing market. 

The author of today's report, Conall MacCoille, chief economist at Davy, said the data pointed to a modest increase in house prices for the rest of the year.

The economist said that while the outlook remains uncertain, he believes house prices look set to rise by close to 10% for the calendar year. 

"However as the figures for new instructions indicate, annual price inflation is likely to slow towards 5% by the end of the year. This is not a negative given that wages have not kept pace with house prices, stretching affordability," he added. 

Today's report also found some evidence that the supply situation for housing was beginning to improve.

Angela Keegan, Managing Director of MyHome.ie, said the total number of homes listed on the site rose by 9.4% between the first quarter and the second quarter. 

"The upward trend has been most marked in Dublin where we now have 5,550 properties listed, up 18.6% from March," she added.  

Ms Keegan also said that transaction levels remained strong early in 2015, but as with supply, they are coming off a low base. 

In the first four months of the year for which the data is close to complete, transaction values are up 59% and by 48% in volume terms on the same time last year.

"While it is encouraging to see the market moving in the right direction the bigger picture continues to show that the Irish housing market remains illiquid. It’s clear we still have some way to go before we can say we have a properly functioning market," Ms Keegan stated. 

With a general election looming, Davy economist Conall MacCoille urged the Government to avoid introducing any measures aimed at relaxing credit constraints and inappropriately stimulating demand even further.
 
"The key to restoring a healthy Irish housing market is to implement sorely needed measures to alleviate planning and other bottlenecks that are holding back housing supply," the economist stated.