The latest edition of the Irish Permanent House Price Index indicates that the rate of increase in national house prices is moderating. For the fifth consecutive month, the year on year growth in national house prices has slowed, falling from 18.4% to 16.9% in May.
The latest survey also reveals that from January to May, national house prices rose by 4.5%, compared with a rise of 8.5% over the same period last year. Nationally, house prices rose by 0.4% in May, compared with 1.2% growth the previous month.
The Irish Permanent House Price Index is compiled in association with the Economic & Social Research Institute. Commenting on today's figures, Niall O'Grady, Head of Marketing at Irish Permanent, said that the recent trend of a slowdown in the rate of growth is a healthy development after four years of very strong growth.
'The news is particularly good for first time buyers, however we are still concerned at the slowdown in the rate of house building,' he added.
Today's survey shows that house prices in Dublin rose by 0.5% in May - down from 1% in April. Outside Dublin City and County, house prices rose by 0.4% in May compared with a 1% increase in April.
In May, prices nationally decreased by 0.3% for first time buyers while prices for second time buyers rose by 1.3%. This compares with April increases of 1% and 0.5% for first time buyers and trader-uppers respectively.
The average price of a house for a first time buyer in May 2001 was £125,133. This compares with a figure of £106,905 for the same time last year.
Throughout the country as a whole during May, new house prices experienced no growth compared to a rise of 0.7% for second hand homes. The corresponding increases in April were 1% and 1.2%.
For the year to date, new and existing house prices have risen by 4.4% and 3.9%, compared to 9.3% and 8.4% over the same period last year.
The Irish Permanent survey says that the average price paid for a new house in May 2001 was £145,436, compared with a figure of £125,535 in May 2000.
