New figures from estate agents Sherry FitzGerald show that the average value of second-hand homes in Ireland recorded a 1.3% increase in the second quarter of 2023.
Sherry FitzGerald said this growth contributed to a rise of 2.1% in the first half of 2023, and 3.4% over the past year.
Average values in Dublin grew by 0.7% in the quarter, bringing growth to 1.5% in the first six months and 2.4% in the twelve month period.
The estate agents said that in line with recent trends the rate of price inflation outside of Dublin exceeded that of the capital.
Average values outside of Dublin grew by 2% in the quarter, resulting in a cumulative price growth of 3% in the first half of 2023 and 4.6% annual price growth.
Nationally, the Mid-West and West regions recorded the strongest price growth, with annual growth rates of 9.6% and 7% respectively.
Today's figures also show that sales volumes in the first three months of 2023 continued to surpass pre-pandemic levels.
Excluding block sales and new homes acquired for social housing, about 12,500 housing deals were recorded in the first quarter of 2023, an increase of 2% compared to the same quarter in 2022 and an 11.3% increase compared to the opening quarter of 2020 - just before the Covid-19 pandemic.
In the second-hand market, activity remained steady, with about 11,600 units sold, in line with 2022 figures.
Dublin and the regional centres saw "robust" second-hand activity, with Dublin experiencing a 16.9% increase in transactions compared to the first quarter of 2022.
Cork, Limerick, and Galway also reported increases of 10.6%, 5.7%, and 3.5% respectively, Sherry FitzGerald said.
Meanwhile, the new homes market saw an 11.3% increase in sales.
The Greater Dublin Area (GDA), which includes counties Dublin, Meath, Kildare, and Wicklow, accounted for the majority of new home sales.
The estate agents noted that the surge in new home sales was mainly driven by a 34% increase in Co Kildare compared to the same time in 2022.
Marian Finnegan, Managing Director of Sherry FitzGerald, said the estate agent's analysis of the first six months reveals a return to a more normal level of price inflation in the residential market after two years of heightened inflation in the post-Covid period.
"However, the underlying challenges in the residential market remain, including the risk surrounding output in the new homes sector and a further net loss of 15,000 units from the private rental market," Ms Finnegan said.
"Therefore, urgent policy changes are needed to address both the immediate and long-term challenges in the lettings market in order to stablise the emergency in the rental sector," she added.
