House prices rose by 4.8% between June and September, the latest Daft.ie House Price Report shows today, as the number of homes on sale in Ireland hit a 14-year low.
Daft.ie said the third quarter increase in prices offset falls earlier in the year. The average sale price nationwide stood at €263,750, up 2.7% on the same time last year and 60% higher than its lowest point in early 2013.
But Daft.ie also noted that the number of properties available to buy on the market nationwide was just under 17,700 on October 1, down almost one third on the same time last year and the lowest figure in over 14 years.
It said the housing market has now seen 14 successive months of falling stock, with relatively similar falls in all major regions of the country.
Home prices rose in all 54 markets contained in the Daft.ie report between June and September, although there were significant differences around the country.
Daft.ie said the largest increases were in urban areas, with prices in Waterford city rising by 11%, Galway city by 10% and Cork and Limerick 9% in the three month period. But prices in Dublin rose by an average of just 2.2%.
Outside the cities, the average increase between June and September was 5.8%, with larger increases in Leinster (7.3%) and smaller increases in Connacht-Ulster (3.5%).
Ronan Lyons, an economist at Trinity College Dublin, said the jump in listed sale prices seen in the third quarter of 2020 is not entirely unexpected.
Mr Lyons said the price increases bring the Irish housing market into line with many other housing markets in high-income countries, where Covid-19 has not disrupted the long-term upward trend in housing prices.
"In Ireland's case, the collapse in listings in April and May has translated into a fall in stock on the market - with fewer than 50,000 homes advertised for sale in the year to September, the lowest total since the start of 2015," the economist said.
Ronan Lyons said this highlights the underlying issue affecting the Irish housing system - a prolonged and worsening scarcity.
But he said the significant fall in completion of new homes to be registered in 2020 may prove a temporary blip.
"While the public health emergency clearly dominates policymaker attention currently, longer-term challenges should not be forgotten. Chief amongst these is the lack of housing - especially for smaller households, in or close to Ireland's largest cities and towns," he added.