The average price of a second hand property in Dublin rose by 5.9% during the first three months of the year, according to estate agents Sherry Fitzgerald. The average price of a second hand house nationwide was also up by 5.5% during the same period.
This recovery places house prices back to the level they were in January 2001.
Marian Finnegan, Sherry Fitzgerald's Chief Economist, said that the pace of price inflation was even more robust than anticipated during the first months of 2002. She said this reflected the restoration of consumer confidence in the performance of the market following the December budget.
'Potential buyers who had sat on the fence last year have now re-entered the market and are actively seeking property. Overall transactions are up significantly on the same period last year reflecting the increased consumer interest in the market,' she said.
Sherry Fitzgerald says the strength of price inflation in the first quarter was underwritten by increases in the starter home and investor end of the market with lower price inflation noted in the mid to upper end.
'After the volatility of 2001, the year ahead is showing signs of increased certainty and stability,' Ms Finnegan predicted.
