The average price of a second hand home in the capital now stands at €520,000, an analysis of the market by property advisors DNG has concluded.
Average resale prices in Dublin increased by just under a percent in the first three months of this year, the review found, as strong demand and relatively low supply boosted prices slightly.
It marked a return to growth in prices of second hand homes in Dublin following a decrease in the average price of a resale property of 1.6% in the final quarter of 2022.
That resulted in the annual rate of house price inflation in that market remaining positive with price growth of 2% in the year to March - down from just over 3% in the year to December last.
In the first three months of 2022, second hand prices in Dublin rose by 2% with prices rising by almost 9% on an annualised basis.
The strongest rate of growth in prices was recorded at the entry level to the market, with properties valued at less than €350,000 increasing by 1.8% in the first three months of the year.
West Dublin, which has the largest stock of entry level properties, saw prices rising by 1.6% in the three months to March this year.
First time buyers continued to be very active in the second hand market, purchasing just over half of properties sold over the three months in Dublin.
Just over two thirds of purchasers in the market relied on mortgage finance to complete their purchase, whilst a further 23% were classified as cash or 'non-mortgage finance' buyers.
"Despite a small uplift in values in the capital during the first three months of the year the overall picture in the sales market is one of relative price stability with house and apartment prices all but unchanged over the last twelve months, which will be some consolation for buyers in the current market," DNG Director of Research, Paul Murgatroyd said.
"Available stock levels, whilst rising, are still well below pre-pandemic levels and below the level required to meet demand so the lack of supply is helping to underpin prices at the present time. There are 16% more homes available in the market today, compared to this month last year, depending on location," he added.
Keith Lowe, CEO of DNG, said that went towards partly explaining the low level of price inflation.
"It is noteworthy that according to a recent CSO report, the median age of house buyers who take mortgages was 37 in 2021 up from 36 in 2016. This trend needs to be reversed and we are calling for the government to again re-introduce mortgage interest relief to assist younger first time buyers in particular, as it is having a direct impact on affordability.
"Many first time buyers are currently in rental accommodation and assisting them to move into homeownership has the added advantage of freeing up much needed rental accommodation," he said.
