Asking-price inflation for homes drops to lowest rate in more than two years
Annual-asking price inflation for homes has softened to its lowest rate in more than two years, according to a new report from online property platform MyHome.The report, which covers the first three months of 2026, shows annual asking-price inflation nationwide slowed to 4.7 per cent over the period, down from 5.4 per cent in the previous quarter.That was the softest rate of asking-price inflation since the final quarter of 2023. It was also the fifth consecutive quarter in which inflation had eased and was down from the 8.4 per cent peak at the end of 2024.The slowdown was most pronounced in Dublin, which had its softest rate of asking-price inflation in almost three years, when there was annual inflation of just 0.6 per cent in the second quarter of 2023.READ MOREWithings BeamO review: Next-gen thermometer packs a punch – and a price Reaching for the next rung on the career ladder in the age of AI uncertaintyVet turns to herbal medicine to tackle pet health issuesArtificial intelligence report should be wake-up call for CoalitionBank of Ireland chief economist Conall Mac Coille, who authored the report, said the data gave him confidence house-price inflation will slow towards the group’s forecast of a 4 per cent rise in 2026.[ Tax on some 137,000 vacant homes to be recommended by Oireachtas committeeOpens in new window ]“Notably, there was a relatively soft 1 per cent rise in asking prices in the first quarter of the calendar year, which often sets the tone ahead of the important summer trading season,” said Mac Coille.MyHome managing director Joanne Geary said the mortgage market reflects this trend of the market “pausing for breath” after a period of significant activity. “For example, the first-time buyer market, which constitutes a sizeable portion of the overall market, is now experiencing the slowest pace of increase in average mortgage approvals since 2021,” she said.“Despite all this, competition in the market is still fierce, with the few properties that are available in many cases being bid on by multiple bidders. As a result, the median property around the country is going sale-agreed in just one month.”She said supply has been a “major concern” in the Irish market for some time and there were just 11,800 properties listed on MyHome, which is part of The Irish Times Group, at the end of March. “This figure is up 9 per cent on the year, but it is still very low and not nearly enough to satisfy the persistent demand we are facing,” said Geary. “Of course, new rental rules introduced last month could see a significant number of properties coming on to the market for sale, but it remains to be seen if this could be offset by homeowners’ reluctance to sell, for fear they will not secure a suitable alternate property once they offload their own.”On a brighter note, Geary said home completions are a “cause for optimism” after last year’s 36,000 completions beat most expectations. “We expect a slight increase in these numbers for 2026,” she said.“Back yourself”: Aimee Connolly shares her story of 10 years in businessMac Coille said competition among homebuyers “remains intense”. The median transaction was still being sold 7 per cent above the original asking price in March, with one-in-six transactions settled 20 per cent or more above asking.“The market remains difficult for homebuyers and sellers,” he said. “There were 11,800 properties listed for sale at the end of March, up 9 per cent on the year – but still an exceptionally low number.”A “notable feature” of the housing market in 2026 will be elevated numbers of small landlords in the private rented sector leaving that market and selling their properties, with “the catalyst” being new stricter regulations and the introduction of six-year tenancies. Data from the Residential Tenancies Board shows there were 10,612 notices of termination received in the second half of 2025, which was up almost 40 per cent on the same period of 2024. MyHome said the figures so far suggest exiting landlords could boost housing transactions by about 3 per cent this year.
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