House prices have risen by €21,000 in the last year as 'desperate' buyers take on more debt

The average price of a home is now €253,000, according to a new report.

Average house prices have increased by approximately €21,000 in the past year.

The latest report from also shows that Dublin house prices have increased by €40,000 to €366,000.

It means the rate of inflation in Dublin has now reached 11.8%, while nationally it's 8.9%.

Report author and Chief Economist at Davy, Conall MacCoille, said the increase is not surprising.

"When we look at the amount of homes available for sale, it's just over 20,000. That's 1% of the housing stock of 2,000,000 homes," he said.

Mr MacCoille said people are taking on more debt in an attempt to get the few homes that are on sale.

"People are getting desperate, people are taking on more and mortgage debts., The median loan-to-income ratio for first-time buyers is about three times their income," he added.

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