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Irish Housing Market Cools as Demand Softens: Key Insights from the Daft.ie Sales Report Q3 2026

Ireland’s housing market entered a noticeably cooler phase in the third quarter of 2026, with both list and transaction price inflation easing and signs of softer demand emerging across the country. The latest Daft.ie Sales Report Q3 2026 provides one of the clearest indications yet that the post‑pandemic surge in market heat is giving way to a more balanced—though still supply‑constrained—environment.

Below, we break down the major national and regional trends shaping the Irish property landscape this quarter.

National Overview: Price Growth Slows, Market Heat Falls

List prices rose by 3.0% year‑on‑year, half the pace recorded in 2025, while transaction prices increased by just 0.8%, the slowest annual growth since 2020 . Between June and September, list prices increased modestly (+0.7%), but early transaction data suggests a slight quarterly decline (‑0.4%).

This divergence between list and sale prices is significant. For much of 2024 and early 2025, buyers routinely paid above asking. That trend has now reversed:

  • Market heat—the gap between initial list price and final sale price—has fallen from 6.8% to 2.6% in a year.
  • The average list price nationwide now sits just under €445,000, while the average transaction price is slightly lower at €442,000.

The cooling is not driven by a surge in supply. Instead, demand has softened:

  • Stock levels rose 12.5% year‑on‑year, with 13,775 second‑hand homes for sale on September 1st.
  • However, this remains 47% below pre‑Covid norms, when over 26,000 homes were typically available.

Homes are simply taking longer to sell. Outflows (sales) fell 3% over the year, while inflows (new listings) remained flat. As a result, the market is shifting from overheated to merely tight.

Dublin: A Sharp Turn in Transaction Prices

Dublin stands out as the region experiencing the most pronounced cooling.

  • List prices in the capital rose 2.7% annually, down from 4.3% last year.
  • Transaction prices, however, fell 5.2% year‑on‑year, the largest drop since the series began in 2014 .

The average list price for a three‑bed semi‑detached home is now €635,000, while the average transaction price for the same segment is €643,000.

Stock levels in Dublin increased 16% to 3,802 homes for sale—bringing availability close to pre‑Covid norms. Yet demand has softened enough that both new‑build and second‑hand sales declined over the year.

This is the clearest sign of a genuine slowdown in buyer activity within the capital.

Four Major Cities: Strongest List Price Growth Nationwide

Cork, Galway, Limerick and Waterford collectively recorded the fastest list price inflation of any region:

  • Prices rose 5.1% year‑on‑year, with a quarterly increase of 2.2%.
  • The average list price for a three‑bed semi‑detached home reached €416,000.
  • Notably, this group of cities is now 0.6% above its Celtic Tiger peak, making it the first region to surpass that benchmark .

Stock levels rose sharply (+27%), but availability remains one‑third below pre‑Covid norms. Transaction prices increased 1.5% in the quarter, with annual inflation easing to 3.9%.

Leinster (Excluding Dublin): Inflation Falls to Six‑Year Low

Leinster’s commuter counties saw a marked slowdown:

  • Annual list price inflation dropped to 2.1%, the lowest since 2020.
  • The average three‑bed semi‑detached home lists at €383,000.
  • Stock rose 21%, but remains 43% below pre‑Covid levels.

Transaction prices fell 1.1% in the quarter, though they remain 4.2% higher year‑on‑year. New‑home sales drove a 4.1% increase in total transactions, offsetting a decline in second‑hand sales.

Munster (Outside Cities): Strongest Transaction Price Growth

Munster’s non‑city markets recorded the fastest transaction price inflation nationwide:

  • Transaction prices rose 6.4% year‑on‑year, with a quarterly increase of 2.7%.
  • The average three‑bed semi‑detached home transacted at €318,000.
  • List prices rose 4.6%, broadly in line with last year.

Despite this strength, supply remains extremely tight: availability is 64% below pre‑Covid levels.

New‑home sales now account for over a quarter of transactions—up from just 11% in 2021—highlighting a structural shift in buyer preference.

Connacht–Ulster (Excluding Galway): Inflation at Its Slowest Since 2020

Connacht–Ulster saw the most significant cooling in list prices:

  • Annual list price inflation fell to 3.6%, down from 9.2% last year.
  • The average list price for a three‑bed semi‑detached home is €265,000.
  • Stock levels rose slightly (+2%), but remain 60% below pre‑Covid norms.

Transaction prices rose 1.9% in the quarter but were 1.4% lower year‑on‑year. As in other regions, new‑home sales grew strongly, rising by over a third.

New‑Build Market: A Growing Share of Transactions

Across Ireland, new‑build homes continue to play a larger role in market activity:

  • New‑home sales rose 13% nationally, reaching almost 14,000 transactions.
  • The median price of a newly‑built home is now €448,000, up 3% annually.
  • New builds accounted for the entirety of national transaction growth, with second‑hand sales falling slightly.

This shift is particularly visible outside Dublin, where new‑home sales rose by nearly a quarter.

Market Sentiment: Only 10% Believe Current Prices Offer Good Value

Daft.ie’s long‑running sentiment survey shows that just one in ten market participants believe current prices represent good value—unchanged since 2021 and far below the 70% peak seen in 2013–2014.

This persistent pessimism underscores the affordability challenges facing buyers, even as price inflation cools.

What This Means for Buyers and Sellers

For Buyers

  • Cooling transaction prices and falling market heat suggest improved negotiating conditions.
  • More stock is available than last year, though supply remains historically tight.
  • New‑build options are expanding, particularly outside Dublin.

For Sellers

  • Pricing strategy is becoming more important as buyers grow more cautious.
  • Homes may take longer to sell than in recent years.
  • Regions like Munster and the major cities still show strong demand, but Dublin’s slowdown is notable.

For the Market Overall

Ireland is transitioning from a post‑pandemic surge to a more balanced—though still supply‑constrained—market. Demand is softening, price inflation is easing, and regional dynamics are becoming more varied.

Conclusion

The Daft.ie Sales Report Q3 2026 paints a picture of a housing market in flux. While prices remain high by historical standards, the pace of growth is slowing, and buyer behaviour is shifting. Dublin is cooling sharply, regional cities remain resilient, and new‑builds are increasingly central to market activity.

For anyone navigating Ireland’s property landscape—buyers, sellers, investors, or policymakers—this quarter’s data offers essential insight into where the market is heading next.