House prices across the State rose at an annual rate of 2.9 per cent in November, up from a rate of 2.2 per cent the previous month, as the market defied the dampening impact of higher borrowing costs.
The latest residential property price index, compiled by the Central Statistics Office (CSO), also showed that prices in Dublin, which had been declining, rose by 0.9 per cent year on year in November while prices outside Dublin were up by 4.4 per cent.
The State’s property market has slowed significantly since a pandemic-driven surge in 2020 and 2021 on the back of 10 consecutive interest rate rises from the European Central Bank, which have made it more expensive for buyers to borrow.
However, the Government’s help to buy schemes have fuelled activity particularly with first-time buyer segment of the market.
While headline inflation for the market as a whole is less than 3 per cent, the cost of new dwellings, which are predominantly bought by first-time purchasers, rose by over 10 per cent in the third quarter, the CSO said.
Buyers paid a median or middle price of €325,000 for a home in the 12 months to November, the latest figures show.
The Dublin region had the highest median price (€440,000) while within the Dublin region, Dún Laoghaire-Rathdown had the highest median price (€622,000), and South Dublin and Fingal both had the lowest (€410,000).
The highest median prices outside of Dublin were in Wicklow (€430,000) and Kildare (€390,000), while the lowest price was €161,000 in Longford.
The latest CSO figures indicate there were 4,255 house purchases were filed with Revenue in November, worth a total €1.8 billion.
This represents a 5.8 per cent decrease compared on the same month of 2022 but a marginal increase compared with October.