Urban Markets Lead Early Signs of Stabilisation as Second‑Hand Supply Rises – Daft Q1 2026 Report
Ireland’s housing market entered 2026 with its clearest shift in momentum in several years, according to the latest Daft.ie Irish Sales Report for Q1 2026. While prices continue to rise nationally, the pace of growth has slowed noticeably, signalling a gradual move away from the intense post‑pandemic overheating that has defined recent years. Crucially, this cooling is not uniform—urban markets are leading the way, while many regional areas remain under significant supply pressure.
Dublin Shows the Strongest Signs of Change
The report highlights Dublin as the standout example of early stabilisation. The capital has recorded its weakest price inflation since 2023, with some modest quarterly declines in transaction prices. At the same time, availability has improved sharply: second‑hand homes for sale in Dublin are up 14% year‑on‑year, bringing stock levels closer to pre‑pandemic norms. Other major cities are showing similar, though less pronounced, patterns.
This shift is linked to a wave of homeowners rolling off fixed‑rate mortgages taken out during the early‑2020s interest‑rate spike. As these borrowers exit fixed terms, financial and contractual barriers to moving ease—unlocking more second‑hand listings and boosting supply in urban areas.
Regional Markets Still Under Strain
Outside the cities, the picture is markedly different. Many regions remain deeply supply‑constrained, with second‑hand availability still far below pre‑pandemic levels. While parts of Leinster benefit from increased new‑home delivery, much of the country continues to experience limited new supply and subdued second‑hand activity. As a result, price inflation remains stronger in these areas.
Market Heat Remains Elevated—But Diverging
Daft’s “market heat” measure—the typical gap between asking and final sale price—remains high at 5.8% nationally, compared with 3.4% two years ago. But again, regional differences tell the real story:
- Dublin: Heat has eased from 7.6% to 6.9%, reflecting improved balance between supply and demand.
- Munster: Competition continues to intensify, with the gap widening to 7.2%.
- Leinster (excluding Dublin): Heat has risen steadily to 4.3%.
These figures reinforce the emerging split between markets where supply is improving and those where shortages remain acute.
A Market Still Defined by Supply Constraints
Despite early signs of cooling in urban centres, the report is clear: Ireland’s housing market remains fundamentally supply‑constrained. Any meaningful easing of price pressures will depend on sustained increases in both second‑hand and new‑build supply.
For now, the market is transitioning—not slowing uniformly, but reshaping itself along urban–regional lines. Buyers in cities may begin to feel slightly less competition, while those in many regional areas continue to face tight supply and strong upward pressure on prices.