House price index shows continuing rise
House prices continue to increase, rising by 1.6% in May this year, according to a permanent tsb/ESRI House Price Index.
In the first five months of 2006 average national prices have risen by 6.7%, compared to just 1.8% in 2005.
In May, the price of houses nationally rose by 1.6%, up slightly from April's 1.4% growth, while the growth rate in each of the six months prior to that averaged 1.2%.
The index also reveals that over the last twelve months between May 2005 to May 2006 the growth in national prices was 14.5%, more than twice that recorded in the twelve months to May 2005 (6.6%).
The average price paid for a house nationally in May of this year was €296,361, up €18,500 on that recorded for December 2005 (€277,852).
Niall O’Grady, Head of Marketing, permanent tsb said: "All sectors, particularly the commuter counties, have experienced strong rates of growth.
"However we expect that the recent ECB rate increase – the third in a series over recent months - will start taking some of the fizz out of the market over the remainder of the year.”
House prices in Dublin and outside Dublin both grew by 1.6% and 1.7% respectively in May.
In April 2006 the relative price increases were 1.1% each.
The average price paid for a house in Dublin and outside Dublin in May 2006 was €394,795 and €256,418 respectively.
The equivalent prices at the start of 2006 were €368,576 and €240,201.
House prices in the commuter counties of Dublin grew by 2.1% in May 2006, compared to 1.2% in April 2006.
House price growth in the commuter counties year on year to May 2006 was 15.7%, up slightly from that recorded to April 2006 (13.8%), and more than twice the rate recorded to May 2005 (5.9%).
Growth in the first five months of this year was 8.2% compared to 3.1% last year.
The price of a house in the commuter counties in May 2006 was €323,363, up almost €25,000 from €298,866 in December 2005.
