Figures released today by Permanent TSB and the ESRI show that house prices grew by 2.5% in the first half of this year, compared with 4.7% in the same period last year.
But their house price index showed that the average price paid by first-time buyers rose by 4.2% in the period as they bought more second-hand homes.
Overall, national house price rose by 0.6% in June compared with May, while the annual rate of growth to June was 6.3%, compared with 6.6% in May.
Permanent TSB's Niall O'Grady said the performance of the market showed 'continued moderation', though some sectors were still showing relatively strong growth, He said he expected house prices to rise by around 5% this year. This would be the lowest pace in nine years.
House prices in Dublin rose by 0.9% in June, compared with 0.3% outside the capital, bringing growth for the first six months t0 3.5% and 2.3% respectively. But prices in the commuter counties (Louth, Meath, Kildare and Wicklow) fell by 0.1% in the month, though they are still running 3% ahead in the first six months.
Prices for first-time buyers increased by 1.2% in June, while prices for second-time buyers were up 0.4%. The increases for the first half were 4.2% and 1.9% respectively.
Prices for new houses were 0.4% higher in June, while second-hand prices rose by 0.8%. Over the first half of 2005, new and second-hand house prices have risen by 2.9% and 2.4% respectively.
Meanwhile, research on first-time buyers, also carried out by Permanent TSB and the ESRI, shows that 20% benefit from a gift from a parent or relative to help fund their purchases. The average amount received is €15,000.
The average age of a first-time buyer is 30. 80% are younger than 34 while 10% are older than 40. While apartments account for 16% of first-time buyer purchases in the Dublin area, this falls to 5% for the country as a whole.
