Home prices continued to rise in the first three months of the year, Sherry FitzGerald said, as the housing shortage continued to drive demand higher.
Prices of second-hand homes rose an average of 2.3 per cent between January and March, the estate agent said in a statement. Average property values are up 7.5 per cent over the past year, it added.
“The first quarter of 2025 witnessed sustained and robust price growth in the residential market,” Sherry FitzGerald managing director Marian Finnegan said. “A critical factor underpinning this trend is the persistent shortage of supply in the second-hand housing sector, with stock levels reaching historic lows in January this year.”
Prices in Dublin continued to rise at a faster pace than the rest of the country, increasing 2.6 per cent in the quarter and 7.6 per cent year-on-year. Outside of the capital, prices rose 1.9 per cent quarter-on-quarter and were up 7.3 per cent compared to 12 months earlier.
The report is the latest data point underlining the difficulties for prospective home buyers at present. Prices increased last year at almost double the rate of 2023, according to data from the Central Statistics Office (CSO), while Minister for Housing James Browne acknowledged last month that apartment building had “collapsed” and needed a “radical” response from the Government to get construction going again.
Overall, housing completions fell to just over 30,000 last year, according to the CSO – barely half the 62,000 Sherry FitzGerald says is needed to meet demand.
About 0.5 per cent of the housing stock was listed for sale at the start of the year – far below the historic norm. Sales of second-hand homes declined 5.8 per cent in 2024 compared with a year ago, something the agent said was a “direct consequence” of the supply shortage overall.
Meanwhile, new home sales continued to rise, jumping 7.7 per cent in 2024. The Greater Dublin Area accounted for about 54 per cent of all new-home transactions.
“The residential market in 2025 continues to grapple with persistent challenges,” Ms Finnegan added. “Declines in planning permissions, housing commencements, and completions, as highlighted in recent reports, emphasise the urgent need for Government action to tackle the housing crisis.”
Sherry FitzGerald also highlighted that landlords continue to leave the market, undermining the rental market.
About 8 per cent of second-hand home buyers through Sherry FitzGerald were investors during the first quarter, it said, while 30 per cent of vendors were investors selling their properties.
