An 'ongoing story of demand and supply' has seen Ireland’s property asking prices surge 7.3% over the past year.
The latest MyHome.ie report shows the increase is the fastest rate of inflation growth in nearly two years.
According to the report, the median asking price around the country in the fourth quarter last year was €365,000.
In Dublin it was €465,000 and elsewhere around the country it was €310,000.
The report notes that, in May 2024, houses were being sold for 6% over the original asking price, "signalling fierce competition among homebuyers".
OnlineApplication.com CEO Karl Deeter told The Pat Kenny Show there is simply not enough supply.
"There's a great demand for housing - wages in this country are good, the economy is good, people want to own a home, the rents are very high," he said.
"When the homes aren't there in sufficient numbers, you'll see that it will start to push prices up.
"Prices are only a reflection of the relationship between demand and supply - that's all they are".
'The gazelle getting caught'
Mr Deeter said Ireland’s push for supply to meet demand has been hit by wars, inflation and pandemics.
"Do you ever watch National Geographic and you just know the gazelle is going to get caught but it's running as fast as it can?" he said.
"I often feel that it's like watching that but in a housing perspective nationally.
"We just can't seem to get away from these things that are holding us back from getting from where we need to be."
'House prices v the alternative'
Mr Deeter said while price rises are "across the country", there are some regional differences.
"You have to remember if you see a 3% rise in Leitrim it's not as significant as a 3% rise in Dublin," he said.
"So that's the frustration: nationally prices are up 7.3% but you're still talking about - no matter where you buy - something that can be in a five-figure number [of] a price increase".
Source: MyHome.ieMr Deeter said the rising figures should be viewed in context.
"Rents are still high and rising... but it's not just a story about house prices in isolation," he said.
"It's about house prices versus the alternative and that's where I think we need to be looking.
"You can say prices are high but if you have a choice between renting the money or renting the property, renting the money - when you get a mortgage - works out far cheaper for you.
"Just to put that in perspective, Dublin rents at the moment are €2,100 a month according to the last Residential Tenancies Board index.
"That's the same payment as a mortgage of €430,000 over 30 years".
Annual asking price inflation in Dublin has accelerated to 7.2%, and to 7.6% in the rest of Ireland.
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