Experts think house prices in Ireland will soon level off

One can hope!

That is according to a new survey carried out by the Society of Chartered Surveyors Ireland (SCSI), the results of which are based on the responses of 175 estate agents.

The report revealed that estate agents can expect national property prices to increase around 5% over the next year, with current prices being described as 'expensive or very expensive' by estate agents.

60% of agents believe that prices will soon level off, with a further 16% believing they have already peaked.

A report from Daft last month stated that house price inflation has reached a 10-year high.

National prices increased 3% nationally during the second quarter of the year, with the average listed property reaching €357,851.

Furthermore, the Daft report found these prices are almost 13% higher than last year and 40% higher than pre-COVID levels.

Today's SCSI report found that 70% of estate agents reported low stock levels, with over half saying the lack of supply is the main driver of inflation.

Gerard O’Toole, SCSI President, said the report indicates mounting concern over housing supply shortage, alongside a recent slowdown in home construction.

He added that over half of its surveyed agents cited a lack of supply as the main reason for inflation.

“We can really see the impact the lack of supply is having on house prices. At the same time, 70% of agents are reporting low stock levels of new and second-hand homes, again underscoring the persistent challenge of limited supply in the market.

“Over the past five years, more than half of agents have consistently highlighted low stock levels, stressing that constrained supply remains a fundamental issue impacting the market," he continued.

He further added that the fact that fewer homes are being built than the government's 41,000 target highlights an urgent need to fix infrastructure and quickly make the Housing Activation Office fully operational.

The Housing Activation Office was set up by Minister James Brown in April and aims to identify obstacles and actions needed to speed up housing delivery.

O'Toole further added: "Eighty-eight percent of agents believe property prices are expensive or very expensive, the highest figure we’ve recorded. We have had 12 years of continuous price growth, and the level of increases we have seen in recent years is just not sustainable.

“Looking at where we are in the market cycle, 78% of agents believe prices will level off soon or have already peaked. In the medium to long term, the only way to ensure prices stabilise is to ramp up supply.”

Additionally, the report found that affordability challenges have intensified for first-time buyers.

“These findings highlight the persistent structural barrier that exists to homeownership, even for dual-income households in stable public sector roles,” said O’Toole.

“In addition, there are thousands of people on lower salaries who will not be able to buy and will require support.”