House prices see moderate increase on back of Central Bank rules

The increase in supply in Dublin is seen as another reason for the price moderation.

The report was authored by Conall MacCoille, Chief Economist at Davy, who said ease planning bottlenecks would be a better solution than a UK-style "help to buy" scheme.

“As the election approaches, it is probable that inappropriate recommendations, perhaps aping the UK’s ‘help-to-buy’ scheme will come to the fore," he said.

"These should be resisted at all costs. The key to restoring a healthy Irish housing market is to implement sorely needed measures to alleviate planning and other bottlenecks that are holding back housing supply."

The data suggests a 10% increase in prices over the course of this year. MyHome also reported some evidence of supply issues easing.

Angela Keegan, managing director of the site, said it had a 9.4% increase in the number of homes listed.

“The upward trend has been most marked in Dublin where we now have 5,550 properties listed, up 18.6% from March,” she said.

“Transaction levels remained strong early in 2015, but as with supply, they are coming off a low base. In the first four months of the year for which the data is close to complete transaction values are up 59% and by 48% in volume terms on the same period of 2014.

“While it is encouraging to see the market moving in the right direction the bigger picture continues to show that the Irish housing market remains illiquid. It’s clear we still have some way to go before we can say we have a properly functioning market.”

MyHome also released its figures on average asking prices for three bedroom semi-detached properties around the country.

In Dublin prices are up to €271,500, in Cork they remained static at €185,000, and Galway was up 12% to €167,000, one of the largest increases.

The biggest falls were in Roscommon and Donegal, where asking prices were down 12%.

Cavan saw the biggest rise, up 22%, MyHome said.