Some experts are warning that house prices could rise by even further than predicted over the coming 12 months.
At the moment, the average price of a home nationwide stands at €266,000.
In Dublin, the average price of a property stands at €375,000.
Research from property website MyHome.ie and Davy expects house prices will increase by 5% in 2019.
They say strong demand and rising incomes are the main factors driving this growth.
But Karl Deeter from Irish Mortgage Brokers says asking prices could grow by more than 5% in 2019.
He says "It wouldn't surprise me if house prices actually rise by more than 5%, because quite often a market will do what you don't expect."
"For instance, if people are saying that rental prices will keep going up - rental prices feed in to house prices because investors are looking for returns".
"If that market starts to drive housing prices you could actually see it go higher than 5%, and it would be quite unexpected".