New CSO study shows house prices are rising in the West

House prices in the West have continued to rise despite rising interest rates and a cost-of-living crisis.

The latest residential property price index, compiled by the Central Statistics Office (CSO), reveals that house prices in Mayo, Galway, and Roscommon have gone up by 2.1% in the 12 months to August.

In August 2023, some 4,640 homes were purchased nationwide – an 8% per cent increase compared to the same month in 2022.

Outside of Dublin, property prices rose by 3.1%, with the cost of apartments rising by 1.8% and houses by 3.1% versus the same month a year ago.

The median price of a home purchased in the year to August 2023 was €320,000.

The most expensive Eircode area over the 12 months to August 2023 was A94 Blackrock with a median price of €735,000, while F45 Castlerea had the least expensive price of €135,000.

Nationally, residential property prices are now 2.8% above their highest level at the peak of the property boom in April 2007 and have increased 129.2% from the post-crash trough in early 2013.

The CSO data also shows that between April and June, prices of new dwellings were 11% up on the same three months of 2022.

That compares to an 11% increase in the first quarter.

Prices of existing homes in the second quarter were 0.6% higher than in the same period last year.

CSO statistician Niall Corkery said:  “The region outside of Dublin that saw the largest rise in house prices was the South West (Cork, Kerry) at 4.4 per cent, while at the other end of the scale, the Midlands region (Laois, Longford, Offaly, Westmeath) and the West region (Galway, Mayo, Roscommon) both saw a 2.1 per cent rise.”

Dermot O’Leary of stockbroker Goodbody said the property market has remained resilient despite various headwinds.

“While interest rates are dampening demand, both house prices and transactions continue to hold up quite well in Ireland,”

He also noted that momentum in price growth has picked up in recent months.