The latest report by property website MyHome.ie has shown Donegal house prices has jumped one of the most in the third quarter of this year.
The average house price inflation is running at 4.1% around the country.
But in Donegal it is now running at 11.8% with the price of a three bedroom semi-detached home now costing €170,000.
The recent drop in house prices ‘has come to an end’, according to MyHome.ie.
Both the UK and US have seen house price drops.
But in Ireland house prices are going up again.
Report author Conall MacCoille told Newstalk Breakfast’s Business that Ireland has gone through a period of price correction.
“Clearly valuations got very stretched during the pandemic and in Dublin, transaction prices actually fell for eight straight months,” he said.
“That seems to be coming to an end; what we’ve seen in this quarter’s MyHome report is asking price inflation actually increasing during the summer towards 4%.
“So, Ireland really stands out quite a bit now from some of the [other] European countries.”
Mr MacCoille said the number of adults living at home with their parents now makes up over 10% of the population.
“It’s hard to believe, but 522,000 people are now adults living at home with their parents,” he said.
“That’s over 10% of the population.
“Of those, 275,000 are adults living at home with their parents but are in employment.
“That particular group has grown by 28% since 2016”.
Mr MacCoille said he is “sure” that marks the highest number ever as a percentage of the population.
“When you look at the demand side to start with, we can see what people are borrowing each month,” he said.
“The average mortgage approval for house purchases broke through €300,000 for the first time in August.
“Mortgage lending volumes are up… so, with the economy doing so well demand is robust.
“Then if you look at the supply side, we’re nowhere near the 40 to 50,000 units the sector needs to build to eat into the pent-up demand that’s there.”
