A lack of new home construction and historically low supply caused prices for three-bedroom semi-detached homes in Clare, Donegal, Galway, Limerick, Mayo, Roscommon, and Sligo to jump by over €10,000 in just 12 weeks, with an average annual increase of 16%. This growth rate is double that of commuter counties, where prices rose by 7.5% annually.


The Index, which tracks the sale prices of Ireland’s typical three-bed semi-detached homes, shows that the national average selling price increased by 2.1% in the past three months to €330,602, marking a 9% rise over the year.


West of the Shannon, price surges were especially pronounced, with Mayo and Clare experiencing annual increases of 25% and 21%, respectively, due to intense competition for limited properties.


REA spokesperson Seamus Carthy predicts a 6% rise in house prices in 2025, alongside heightened bidding wars as buyers compete for a dwindling supply of second-hand homes. “In many areas where new homes are not being built, options are extremely limited,” Mr. Carthy said. “Buyers frustrated by missing out on multiple properties will return to the market determined to secure a home, driving up prices further.”


In some cases, bidding wars have pushed prices as much as €50,000 over the asking price.


In Dublin city, the average three-bed semi-detached home now sells for €542,000, a 1.8% increase in the last three months. Major cities outside Dublin recorded an average quarterly rise of 2%, with homes now priced at €348,000, representing an annual increase of 7.7%. Agents expect this figure to rise by 9% in 2025.


In Galway city, prices for three-bed semis rose by €10,000 for the second consecutive quarter, reaching an average of €370,000, up 10% year-on-year. Cork (€390,000), Limerick (€320,000), and Waterford (€312,000) also experienced quarterly increases of 1.3%, 1.6%, and 2.3%, respectively.


Large towns across the country saw the strongest growth, with prices rising 11.5% annually and 2.6% this quarter to an average of €249,448. Mayo recorded the largest yearly increase, with three-bed semis up by 25% (€48,000) since Q1, now priced at €240,000. Clare saw the largest quarterly rise, with prices jumping by €20,000 to €290,000, an annual increase of 21%.


Commuter counties experienced a 2% rise over the past three months, with average prices reaching €343,778, reflecting an annual increase of 7.5%.


REA agents attribute the trends to a severe shortage of both second-hand properties and new builds, which is expected to continue shaping the market well into 2025.