Average house prices to rise by 3% in 2024, survey predicts

Michael Bolton

The average house price is set to rise by three per cent in 2024, according to the REA Average House Price Index.

Figures show prices rose by 1 per cent in the final quarter of 2023, with the average three-bed, semi-detached house costing €304,259.

The REA Average House Price Index concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an "accurate picture of the second-hand property market in towns and cities countrywide".

Prices in Dublin city rose by 1.5 per cent in the last three months, meaning that the average three-bed semi in the capital is now selling at €511,667, an increase of three per cent in the last year.

Mortgage-approved first-time buyers are still the main market drivers, with 59 per cent of sales nationally, a figure that rises dramatically to over 80 per cent in commuter counties.

Cities outside Dublin experienced a 1.73 per cent rise in the past three months to an average selling price of €323,000 – with the annual rate of increase of 4.5 per cent.

Prices in Cork increased by 1.4 per cent in the past three months – a four per cent annual rise to €370,000 with agents O’Donoghue and Clarke predicting the same again in 2024.

Galway prices rose slightly in the quarter by 0.6 per cent to €337,000, with agents predicting an unchanged scenario in the coming year.

“Dublin is becoming a two-tier market, with the average house price proving to be an affordability ceiling,” said REA spokesperson, Barry McDonald.

“While our agents predict an average one per cent increase across 2024, this varies according to prices in their immediate area.

“Agents on the west side of Dublin recorded notable increases in Q4, with Lucan prices rising by €20,000 to €435,000 (4.8 per cent) and Tallaght increasing by 3.5 per cent to €290,000.

“In areas such as Rathcoole (€335,000, 1.4 per cent) the market is chasing affordability, and a scarce supply of properties has been selling at a faster pace.

“However, while these agents are predicting rises of three to five per cent in 2024, areas where prices are above the average Dublin price showed little to no growth in Q4 and are forecasting price falls in the next 12 months.

“Across the country, agents are reporting no let-up in demand, but a supply of stock which is at an all-time low.”