House price growth speeds up in May
June 28, 2006 11:26
Figures released today show that the rate of growth in house prices accelerated in May, bringing the average prices to just under â‚¬300,000.
The Permanent TSB/ESRI house price index recorded a 1.6% increase in national house prices compared with April. Prices had risen by 1.4% in April and by an average of 1.2% over the previous six months.
The annual rate of growth was 14.5% in May, up from 13.2% in April. For the first five months of the year, prices are up by 6.7%, compared with just 1.8% in the same period in 2005. The average price of a house in May was â‚¬296,361.
Permanent TSB’s Niall O’Grady said all areas of the market had experienced strong growth in May, but the recent ECB interest rate rise would ‘start taking some of the fizz out of the market’ over the rest of the year.
A breakdown showed that house prices in Dublin and outside Dublin were up 1.6% and 1.7% respectively in May, giving annual growth rates of 14.9% and 14.3% respectively. Prices for first-time buyers increased by 1.2%, while prices for second-hand buyers were up 1.8% in the month. This gave annual increases of 15.8% and 14.3% respectively.
New house prices increased by 1.1%, existing houses by 1.5% in May. The annual rises were 13.1% and 12% respectively.