PROPERTY PRICES IN Ireland are nearly 20% higher than at the peak of the pre-crash bubble in 2007, according to the latest figures from the Central Statistics Office (CSO).

The median price of a home in Ireland, as of February, is €360,000.

It represents an 8% national increase in house prices over the last 12 months. 

Speaking this morning, managing director of Irish private equity firm Roundtowner Capital Ian Lawlor said the “nub of the issue” is that there is a dwindling supply of homes in Ireland.

Housing targets last year fell short of targets and, according to Lawlor, fewer homes could be built this year as current estimates suggest as little as 25,000 new homes could be completed within 2025.

“Without the introduction of emergency measures, there is little likelihood of housing supply increasing in the short to medium term,” Lawlor said.

Throughout February, 3,245 home purchases were filed with Revenue. The majority of home purchases were the sale of existing properties – with just 600 new dwellings sold.

A total of 1,195 of the purchases were carried out by first-time buyers, who have greater access to grants and subsidy schemes from government. House prices are now 17.3% higher than the peak of the property boom in April 2007.

Home prices in Dublin increased by 7.1% in February while and prices in every other county were up by 8.7%, compared to prices in the last 12 months.

The highest median price of a home in February was €670,000 in Dún Laoghaire-Rathdown in Dublin, while the lowest median price was €185,000 in Leitrim.

Trevor Grant, chairman of Irish Mortgage Advisors, said the “dearth of supply needs to be tackled if the country is ever to emerge from the housing crisis”. He added that the lack of labour to build homes and skill shortages are contributing to that.

“Ultimately, the biggest driver of Irish house price inflation is the shortage of homes coupled with the pent-up demand for housing and an expanding population,” he said.