Figures released today show that house prices for first-time buyers are rising at almost twice the rate being experienced by second-time buyers.
The Permanent TSB/ESRI house price index shows that house prices for first-time buyers rose by 9.4% in the first nine months of this year, compared with 4.8% for second-time buyers. The average price paid by a first-time buyer is now €242,172.
National house prices rose overall by 5.4% in the nine months, down from 7.8% in the same period in 2004. But the survey shows that the rate of increase has picked up in recent months.
In September, prices were up 1% compared with August, while the annual rate of growth was 6.2%. Both of these figures were the same as in August.
Permanent TSB's Niall O'Grady said that after months of moderate growth, sustained price increases from July suggested that the growth rate for the year may be close to the 8.6% level seen in 2004. He said first-time buyers had switched their focus to existing houses rather than new ones after stamp duty changes in the Budget.
Dublin house prices grew by 1.1% in September, while prices elsewhere were up 1%. The annual rates of increase were 7.7% and 4.2% respectively. Prices of new homes were up 0.6% in September, with second-hand prices increasing by 0.8%, bringing annual growth rates to 6% and 6.2% respectively. House prices for first-time buyers rose by 1.7% in the month and 9.6% over the year.
