House prices up 1.2% in June

House prices continue to increase, rising by 1.2% in June this year, according to the latest edition of the Permanent tsb / ESRI House Price Index.

In the first half of 2006 average national prices have risen by 7.9%, compared to 2.5% for the same period in 2005.

Looking specifically at June, the price of houses nationally rose by 1.2% during the month, down from the rate of 1.6% recorded in May this year, while the growth rate in the first half of 2006 has averaged 1.3% per month.

The index also reveals that over the last 12 months, the growth in national prices was 15.2%. This was up on the rate of growth to May ‘06 (14.5%) and more than twice that recorded in the twelve months to June 2005 (6.3%).

The average price paid for a house nationally in June of this year was €299,929. This was €22,000 higher than that recorded for December 2005 (€277,852).

“Price growth nationally in the first half of this year has been very strong, with an annual rate of 15.2% and a year to date rate of 7.9%,” said Permanent tsb’s head of marketing, Niall O’Grady. “All sectors, particularly commuter counties, have experienced strong rates of growth.

“However, it is expected that the recent ECB rate increase and the expectation of further increases, will cause the rate of price growth to ease during the second half of the year.”

House prices in Dublin and outside Dublin both grew by 1.9% and 1.0% respectively in June. In May 2006 the relative price increases were 1.6% and 1.7%.

House prices grew by 16.1% and 15.2% in the twelve months to June 2006 in Dublin and Outside Dublin respectively. The equivalent rates to the end of May 2006 were 14.9% and 14.3% respectively.

For the first half of 2006 growth rates for Dublin and Outside Dublin were 9.2% and 7.9% respectively. The equivalent rates last year were 3.5% and 2.3%.

The average price paid for a house in Dublin and outside Dublin in June 2006 was €402,329 and €259,089 respectively. The equivalent prices at the start of 2006 were €368,576 and €240,201.