Property prices are rising at fastest rate in 17 months, with new surge in Dublin

And the prices of second-hand properties across the State are increasing strongly.

Overall, prices have risen for the eighth consecutive month nationwide as buyers compete for a limited supply of homes.

The increase nationwide was just shy of 8pc in the year to April, according to the Central Statistics Office (CSO).

Economist Dermot O’Leary of Goodbody Stockbrokers said this is the fastest rate of increase since November 2022.

CSO statisticians found prices for new and second-hand homes are rising sharply.

Up to recently, the price of new homes was rising far more than those for existing properties.

In Dublin, prices rose by 8.3pc in the last year. The rise outside the capital was 7.6pc, the CSO said.

Nationally, the increase of 7.9pc in prices is up from one of 7.4pc recorded in the year to March.

Independent economist Austin Hughes said it was notable that there was a turnaround in price rises in Dublin.

He said younger buyers were looking for bargains in the capital, with the market buoyed by high levels of employment and the prospect of lower mortgage rates.

“The pick-up in house price inflation in April is largely a Dublin-driven story by improving employment and the prospect of lower borrowing costs,” he said.

Mr Hughes said there were an extra 23,000 people working in Dublin in the first quarter of this year than a year earlier.

“This is feeding through to additional demand pressure on housing,” he added.

He warned that although property price rises might not go into double-digit territory, values are likely to keep rising at a pace of 8pc to 9pc.

“The likelihood is that an improving economy and the turn in the rate cycle will see property price inflation accelerate further in the next few months,” he said. “While affordability limits mean we may not see double-digit property price inflation, increases of 8pc to 9pc look very possible over the summer.”

Buyers are getting into bidding wars because there simply just isn’t enough supply to meet the demand

Robert Gardiner, director of estate agency Auctioneera, said the figures would be disheartening for property buyers as the trend has been upwards for several months.

“On the ground, we’re seeing high attendance numbers on an ongoing basis at viewings, so it’s very much a sellers’ market out there,” he said.

“Buyers are getting into bidding wars because there simply just isn’t enough supply to meet the demand.”

In April, 3,572 homes were bought by households, the CSO said, referencing filings with the Revenue Commissioners.

This is up 9.5pc when compared with the 3,262 purchases in April.

The median price of a dwelling bought in the year to April was €335,000.

The lowest median, or mid-point, price for a dwelling in the 12 months to April was €169,000 in Co Longford.

The highest median price was €624,999 in Dún Laoghaire-Rathdown.

Prices of new homes in the first quarter of this year were 8.4pc higher than in the corresponding quarter of last year.

This compares with an increase of 9.2pc in the year to the fourth quarter of 2023, the CSO said.

Prices of existing dwellings in the first quarter of 2024 were 5.7pc higher than in the corresponding quarter of 2023.

This compares with an increase of 1.5pc in the year to the fourth quarter of 2023, and an increase of 3.6pc in the four quarters to quarter one of 2023.