Asking price inflation softens to lowest rate in over two years

Annual asking price inflation has softened to its lowest rate in over two years, according to the Q1 2026 Property Report from MyHome in association with Bank of Ireland. Annual asking price inflation is now running at 4.7% nationwide – the last time the rate was lower was in Q4 2023, at 4.1%.

Similarly, annual asking price inflation in Dublin is now 2.9%. This is the lowest rate in the capital in almost three years, when a rate of 0.6% was recorded in Q2 2023.

This is the fifth consecutive quarter in which annual asking price inflation nationwide has eased, lending confidence to our view that Irish house price inflation will slow towards our forecast for a 4% overall rise this year.

The MyHome report for Q1 2026 found that annual asking price inflation was 4.7% nationwide. Annual asking price inflation in Dublin is now 2.9% and the rate is 6.1% in the rest of Ireland.

Meanwhile, the report found asking prices nationally rose by 1% on the quarter, were up slightly by 0.2% in Dublin and rose by 1.7% in the rest of the country.

This means the median asking price for new instructions nationally was €385,000 in Q1. In Dublin it was €450,000 and in the rest of the country it was €330,000.

Other findings include:

• Banking Payments Federation Ireland (BPFI) data for January shows the average mortgage approval to first-time-buyers was €320,000, up 1.9% year-on-year, the slowest pace of increase since 2021.
• There were 11,800 properties listed for sale on MyHome at end Q1 2026, up 9% on the year – but still an exceptionally low number.
• The number of new listings for sale – 8,000 in the first three months of 2026 – is up only 2% on the year.
• The median property is taking just over one month to go sale agreed.
• Of the 10,612 notices of rental termination received in H2 2025, 60% of landlords indicated they expected to sell their properties and 20% said a family member was moving into the property.
• The 36,000 housing completions in 2025 clearly beat most expectations, albeit largely due to a 40% surge in the number of apartment completions to 12,000.
• Our forecast for 37,000-38,000 housing completions in 2026 remains unchanged.
• The RTB’s measure of average rents on new tenancies in Q3 2025 was up 5.4% on the year. For existing tenancies average rents in Q3 2025 were up by 4.6% on the year.
• Looking forward, the ability of landlords to reset rents to the market rate should gradually see the 20% gap between average rents on new and existing tenancies start to close.

Analysis:

The author of the report, Conall MacCoille, Chief Economist at Bank of Ireland, said: “This quarter’s MyHome Report shows that asking prices rose by 1% in Q1 2026, a relatively sedate rise ahead of the summer trading season. Hence, the annual rate of inflation slowed again, to 4.7% in Q1 2026, down for a fifth consecutive quarter from the 8.4% peak at end-2024.

“While this slowdown is evident in the mortgage market – particularly among first-time buyers – competition among buyers is still intense, with the median transaction price still 7% over the original asking price and the median property taking just one month to go sale agreed.

“A notable feature of the Irish housing market in 2026 will be elevated numbers of small landlords in the private rented sector leaving that market and selling their properties – the catalyst being new stricter regulations and the introduction of six-year minimum tenancies.

Residential Tenancies Board (RTB) data show there were 10,612 notices-of-termination received in H2 2025, up almost 40% on the year before.

“These home sales may add significantly to market liquidity in 2026. However, overall transaction levels could be further depressed by another contraction in the number of owner-occupiers moving homes.

“Despite last year’s home completions beating most observers’ expectations, we think these figures likely reflected apartment completions catching up after a weak 2025. As such, we will leave our forecast for 37-38,000 housing completions in 2026 broadly unchanged.

“We are also mindful the recent surge in Brent oil above $100 per barrel will feed through into build cost inflation – potentially adding another headwind to the construction sector.

“The broad message from the MyHome asking price data is that the official measure of transaction price inflation, the CSO’s Residential Property Price Index (RPPI), should continue to slow from the 7% pace recorded in January. Stretched affordability now appears to be leading to more subdued gains in Irish house prices, closer to the current pace of pay growth. We expect the CSO’s official measure of transaction price inflation to slow to 4% by end-2026.”

Joanne Geary, Managing Director of MyHome, said: “While a predicted surge in small landlords exiting the private rental sector is clearly bad news for the rental sector as a whole, this could boost housing transactions this year by 3%, which could provide some much-needed liquidity in a very tight market.

“As has been the case for some time now, more supply is critically important for our property market. We would hope to see homebuilding figures and overall investment in the sector continue to improve on the back of recent policy changes from the Government.”