Figures released today show that house price growth has accelerated in the second half of this year, with prices for first-time buyers continuing to rise at a much faster rate than other sectors.
The Permanent TSB/ESRI house price index shows that house prices for first-time buyers rose by 10.8% in the first ten months of this year, compared with an average of 6.8% for all houses. The figure for second-time buyers was 6.1%. The average price paid by a first-time buyer is now €245,341.
National house prices rose overall by 1.2% in October, slightly faster than September's 1% rise. The annual rate of growth moved up from 6.2% in September to 7.2%.
Permanent TSB's Niall O'Grady said the figures showed that there was plenty of life left in the housing market yet. He said he was still expecting a 'relatively moderate' level of growth for the full year, but it was more difficult to predict how 2006 would develop, especially ahead of an expected rise in interest rates later this week.
Dublin house prices grew by 1.4% in October, while prices elsewhere were up 1.3%. The annual rates of increase were 8.1% and 6.1% respectively.
Prices of new homes were up 1.5% in October, with second-hand prices increasing by 1.3%, bringing annual growth rates to 6.8% and 7.4% respectively. House prices for first-time buyers rose by 1.3% in the month and 9.8% over the year.
