House prices across the country rose by 6.9% in the first six months of the year, according to the latest house price index compiled by Permanent TSB and the ESRI. This compares with a rise of 5.6% in the first six months of 2002.
House prices have now risen by 14.7% over the last year and the average price of a house now stands at just over €220,000. The figures also show that house prices in Dublin have more than trebled since 1996.
During the month of June, national house prices rose by 1.1%, slightly slower than in the previous two months.
Permanent TSB's Niall O'Grady said the rate of growth was stronger than had been expected at the start of the year. He said it appeared that demand for new houses was now being matched by supply, but increasing demand for existing homes from people trading up was driving much of the current growth.
For the first half of the year, Dublin house prices rose by 7.2%, while prices in the rest of the country were up 5.5%. The monthly increases were 2.5% in Dublin and 0.5% outside the city, while the annual increases were 16.4% and 12.9% respectively.
Average prices of new houses rose by 3.3% in the first six months of the year, but existing homes showed growth of 8%. For the month of June, new house prices fell by 1.3%, while second-hand prices were up 1.8%.
Prices for first-time buyers rose by 8.6% in the six-month period, while the rise was 6.2% for second-time buyers. The monthly rises were 1% and 1.3% respectively.
