However, the rate of increase in prices has been slowing down in the last few months.
Central Statistics Office figures show prices rose by 0.9 percent in the year to August.
Prices in Dublin fell by 1.9 percent, but outside Dublin prices increased by 3.1 percent.
In August, prices increased by 0.3 percent compared to the previous month.
Strong demand from first-time buyers and Government support programs are ensuring prices continue to rise.
By combining two Government support schemes, first-time home buyers can get up to €100,000 off the debt they need to borrow for their new home.
Taking advantage of both the new First Home shared equity scheme and the Help to Buy tax rebate, buyers manage to buy a typical home costing €320,000 with a mortgage of just €240,000.
One commentator said it acted as “rocket fuel” to push people into the property market. But this may also be fueling rising house prices.
CSO said the price increases were mainly driven by increases in new home costs, which were 11 percent higher in the second three months of the year compared to the first quarter.
In August, approximately 4,640 house purchases by households at market prices were submitted to the Revenue Administration.
This is up 8 percent compared to 4,295 purchases in August last year.
The average or typical price of a house purchased in August was 320,000 euros.
The lowest average price of a house through August was €159,750 in Longford, while the highest average price was €634,919 in Dún Laoghaire-Rathdown.
The most expensive Eircode domain for the 12 months to August 2023 was A94 Blackrock, with an average price of €735,000, while F45 Castlerea had the cheapest price at €135,000.
NGO statistician Niall Corkery said: “House prices increased by 0.9 per cent in the 12 months to August 2023, compared with 1.6 per cent in July 2023.
“House prices in Dublin fell by 1.9 per cent, while property prices outside Dublin were 3.1 per cent higher in August 2023 than a year earlier.”
Last year house prices in Dublin fell by 2.3 per cent, while flat prices fell by 0.2 per cent.
The highest house price increase in Dublin was seen in Fingal at 0.2 per cent, while Dún Laoghaire-Rathdown saw a fall of 3.9 per cent.
Outside Dublin, house prices rose by 3.1 per cent.
The region where the biggest increase in house prices outside Dublin was seen was the South West region, which includes Cork and Kerry, with 4.4 percent.
At the other end of the scale, the Western region, which includes Laois, Longford, Offaly, the Midlands region of Westmeath and Galway, Mayo, Roscommon, saw an increase of 2.1 per cent.
The national index has now reached 168.2; That’s 2.8 percent above its high at the height of the housing boom in April 2007.
The CSO said house prices in Dublin were 8.3 per cent lower than the peak in February 2007, while house prices in the rest of Ireland were 3.8 per cent higher than the peak in May 2007.
