Market ‘pauses for breath’ as house price growth softens
Ireland’s housing market is showing signs of settling into a steadier phase in late 2025, with bidding pressure easing from earlier highs and price growth levelling off, according to the latest MyHome Property Report in association with Bank of Ireland.
National annual asking price inflation was just over 5% in Q4, broadly in line with results the previous quarter. Asking prices were essentially flat over the period, rising only 0.1%. This stabilisation follows a period during which the CSO’s RPPI recorded 7.6% annual transaction price inflation in September, suggesting the slowdown in asking prices is set to filter through to sale prices in 2026.
The MyHome report for Q4 2025 found that annual asking price inflation was 5.4% nationwide. Annual asking price inflation in Dublin was also 5.4% and the rate was 5.5% in the rest of Ireland.
Meanwhile, the report found asking prices nationally remained essentially flat on the quarter with a 0.1% increase and rising by 0.5% in Dublin. Prices were down by 0.6% in the rest of the country.
This means the median asking price for new instructions nationally was €380,000 in Q4 2025. In Dublin it was €475,000 and in the rest of the country it was €325,000.
Other findings include:
- The Property Price Register indicates 52,000 transactions worth €23.5 billion have been recorded so far in 2025, a 1.2% rebound following a 3% decline in 2024. This improvement has been driven by new-build sales: transactions were up 17% in the first eight months of the year for new-builds, with second-hand homes falling by 2.7%.
- The average mortgage approval reached €336,800 in October, an annual increase of 4.8%. A slower pace than earlier in the year, this suggests borrowing capacity is stabilising, pointing to the increased likelihood of house price inflation staying on pace with wage inflation in the months ahead.
- Rental market data also points toward moderating pressures. The RTB’s national rent index for new tenancies rose 4.7% year-on-year in Q2 2025. This trend indicates that rental inflation is not exerting the same pressure on house prices as in recent years.
- Residential completions expand with 34,000 completions now projected by year end, which is on track to be the most since the Celtic Tiger period, yet still below the 50-60,000 units analysts believe necessary to meet demand. Nevertheless, this is an encouraging sign for medium-term market balance.
- Just 12,200 properties listed for sale on MyHome in December, reflecting ongoing scarcity of available stock.
Analysis:
The author of the report, Conall MacCoille, Chief Economist at Bank of Ireland, said: “This quarter’s MyHome report adds to the evidence that the pace of Irish house price inflation is starting to soften. Asking prices were flat in Q4 2025, up just 0.1% in the usually quiet winter months, with the annual rate of inflation slowing to 5.4%.
“The market is still very tight. In December there were just 12,200 properties listed for sale on MyHome. The median time-to-sale-agreed remains low at 5–6 weeks.”
Mr MacCoille added: “However, the froth in the market is subsiding a little. The median premium over asking has fallen back from a peak of 8.6% in July, to 7.4% in October and November.
“The mortgage data also pointed to more sedate mid-single digit gains heading into 2026. The overall impression from this quarter’s MyHome data is of the market pausing for breath after substantial price gains in 2024 and 2025.”
Joanne Geary, Managing Director of MyHome, said: “It is encouraging to see continued momentum in residential construction, which is essential in improving choice for buyers over the medium term. Increased delivery in urban areas is critical to easing the pressures that persist in the market.
“While there are early signs of stabilisation, conditions remain tight, and buyers continue to compete for a limited pool of properties. Ensuring that supply grows steadily will be key to supporting a more balanced market in the coming years.”
