Housing prices across Ireland increased by more than €1,000 a month in 2018, a new report from daft.ie has revealed.

The latest House Price Report showed a 5.5% annual rise during last year.

Despite the annual increase, the average price in the final quarter was down 1.1.% from the previous quarter.

Major cities like Dublin, Cork, Galway, Limerick and Waterford also showcased significant price rises, ranging from a 2.9% increase in Dublin City to a 9.8% rise in Limerick.

Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said: "During the 2000s bubble and crash, the laws of supply and demand were secondary in the housing market to credit market shocks. Not least because of the Central Bank's mortgage rules, the market this decade has returned to the more fundamental drivers of supply and demand. Since 2013, demand has been strong but supply weak. The increase in homes being built – especially estate houses – in the last 18 months, though, has helped cool down inflation, in particular in the Greater Dublin area, where construction activity is focused. The hope for the housing system is that the building of new homes continues to increase, and to spread to other urban areas."

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Martin Clancy from Daft.ie added: "Interest and demand in the property market continues to grow. We are now seeing over 1,000 property searches taking place every minute on Daft.ie."

The full report is available here.

(CM/MH)