Housing prices fell by 0.3 per cent in the first three months of 2023, according to the latest Daft.ie house price report.
It is the first time in a decade that there was a first-quarter fall in listed prices.
The average listed price nationwide in the first quarter of 2023 was €308,497, 2.7 per cent above the same period in 2022 and 17 per cent below the Celtic Tiger peak.
The number of homes available to buy on March 1st stood at just 13,000, up 30 per cent on the same date last year but still significantly below the 2019 average of 24,200.
In all parts of the country, the rate at which availability has increased has slowed in recent months.
During the first three months of the year, prices in Dublin were on average 0.4 per cent lower than in the final three months of 2022, and in Cork city they were 0.5 per cent lower.
In Limerick city, prices were stable quarter-on-quarter, while Galway and Waterford cities saw larger quarterly falls – of 1.5 per cent and 0.8 per cent respectively.
Outside the cities, prices in Leinster and in Connacht-Ulster fell by roughly half a percentage point, but they rose in Munster, by 0.6 per cent.
The number of homes available to buy on March 1st stood at just 13,000, up 30 per cent on the same date last year but still significantly below the 2019 average of 24,200.
In all parts of the country, the rate at which availability has increased has slowed in recent months.
The post-covid recovery in supply also appears to be weakening, in both new and second-hand segments.
Thus, while this year is unlikely to bring any substantial increases in housing prices, underlying issues stemming from housing shortages will persist, the report said.
Commenting on the report, author Ronan Lyons, economist at Trinity College Dublin, said: “The change in market conditions over the last 12 months is clear from the figures in this latest Daft.ie House Price Report. A year ago, double-digit inflation in housing prices was still prevalent across much of the country.
"Now, very few markets are seeing prices more than a percentage point or two higher than a year ago – and those increases largely reflect increases seen March-June last year.
"But while demand has weakened, the post-covid recovery in supply also appears to be weakening, in both new and second-hand segments. Thus, while this year is unlikely to bring any substantial increases in housing prices, underlying issues stemming from housing shortages will persist.”
Average list price and year-on-year change – major cities, Q1 2023
- Dublin City: €423,593 – up 1.5 per cent
- Cork City: €323,728 – up 1.2 per cent
- Galway City: €345,880 – up 2.5 per cent
- Limerick City: €248,881 – up 3.0 per cent
- Waterford City: €224,138 – up 2.2 per cent
- Rest of the country: €259,567 – up 3.7 per cent
