TWO-IN-FIVE home buying transactions are settled at 10% or more above the original asking price, and one-in-seven  are settled at 20% above.

The figures are revealed in a new report by MyHome.ie, which described the house-buying process as “opaque”.

There were 61,000 residential property market transactions in Ireland in 2024, equating to 2.8% of the housing stock. The was well below the UK’s turnover rate of 3.6%, which is also depressed by rising interest rates.

Liquidity in the Irish housing market has lagged behind the UK in every year since the global financial crisis. Turnover rates were even below those of Northern Ireland, which saw a similar house price collapse to the Republic.

This issue is most pronounced among existing homeowners with mortgage debt looking to move home.

Just 9,000 mortgages were drawn down by movers in 2024, representing just 0.4% of the housing stock. The UK’s rate was 0.9%.

In many cases, buyers cannot rely on asking prices to guide them.

The reasons for this, the report says, are threefold. The emerging divergence between asking prices and final sold prices is contributing to confusion.

It says there is a lack of transparency. A recent survey by the Competition and Consumer Protection Commission (CCPC) showed that just 16% of buyers felt the housing market is transparent.

The Commission said that homebuyers were at risk of not having adequate information during the pre-sale agreed period and conveyancing stage. “Opaque bidding processes may also be a problem,” it said.

The MyHome.ie report said lengthy processes are an issue. Chains of transactions are not generally a feature of the Irish property market, like they are in the UK. As a result, many would-be vendors are put off selling their home, for fear of failing to secure another.

The report recommends transitioning to online, fully-transparent bidding platforms that could “build trust and confidence” in the property market.

Conall MacCoille, Chief Economist with Bank of Ireland and the author of the report, said disclosing legitimate bids will help homebuyers gauge affordability better.

“The introduction of the Property Price Register has brought welcome transparency to the Irish housing market but there is scope to go further,” he said.

“Estate agents are already required to disclose legitimate bids to the regulator. Allowing prospective buyers to see these bids, via new technology platforms, can only help the functioning of the Irish housing market.”