House prices rose by more than 7% over last year despite high interest rates

House prices nationally rose by more than 7 per cent over the last year despite higher mortgage rates and other cost-of-living pressures.

The latest residential property price index from the Central Statistics Office (CSO) indicated that prices rose at an average rate of 7.3 per cent in the 12 months to March this year, up from a rate of 6.2 per cent the previous month.

In Dublin, residential values rose at annual rate of 7.2 per cent in March, while prices outside Dublin were 7.4 per cent higher compared with a year earlier.

This was the seventh consecutive month that headline inflation in the residential market in the Republic has increased.

The CSO also found that the median price nationally for a home is now €333,000.

The most expensive Eircode area over the 12 months to March was A94 in Blackrock in Dublin, with a median price of €720,000.

Castlerea in Co Roscommon was the cheapest at €135,000.

Joey Sheahan, head of credit at online brokers MyMortgages.ie, said a cut in interest rates by the European Central Bank is now imminent, but it is unlikely to affect the Irish property market immediately.

"Today’s report shows that there can be no certainty when it comes to the residential property market in Ireland – prices continue to rise, which means that waiting for rates to come down might not be the most prudent of moves for people looking to buy.

"Some existing mortgage holders are also playing the waiting game – holding on for a rate cut before looking at their switching options. But again, this may not be wise.

"Irish banks have not passed on all the ECB rate increases of the last two years, so it’s highly unlikely that they will all immediately pass on any rate reduction."