House prices set to rise by10% this year, index shows
The survey, compiled in association with the ESRI, reveals that house prices nationally grew by 1.3% during August, almost matching the increase in house price in the previous three months. In June, house prices went up by 0.4%, and by 0.5% in May.
Permanent tsb general manager marketing Niall O'Grady said that since the completion of the survey in August, demand for houses remained strong.
"While the August figures for price growth are surprisingly strong, it would be premature to suggest that this will form a pattern," Mr O'Grady said.
"The evidence for the year as a whole still suggests that we are in the midst of a period of moderation in house price growth, relative to recent years," he said.
"With a rise in prices so far this year of 7.4%, compared to an increase of 6.8% in the same period in 2001, prices nationally are on track to surpass the annual growth experienced last year, and could increase by 9% to 10%."
Mr O'Grady said tax changes introduced by Finance Minister Charlie McCreevy had returned investors to the market and said this was one market driver.
"Low interest rates on deposit accounts and uncertainty in the stock market is combining to attract investors, who see the purchase of a house as a secure, long-term investment," he said.
Mr O'Grady disclosed that permanent tsb mortgage lending business had grown this year.
The index also shows that in the 12 months to August, house prices rose by 4.9% nationally, but so far this year they have risen by 7.4%, compared to an increase of 6.8% in the same period in 2001.
The price of houses bought outside Dublin rose by 1.6% in August 2002, while Dublin prices were unchanged. Prices in Dublin and outside the capital grew by 0.5% in July.
The average price paid for a house in Dublin in August was €252,461, while the price for a house outside Dublin was €172,013 indicating a Dublin premium of €80,448 on the average home. In August 2001, the comparable costs were €244,098 and €163,766.
In August, prices increased by 1.4% for first-time buyers and 1.3% for second-time buyers, while in July, prices increased by 0.4% for both first-time buyers and second-time buyers.
The average price paid in August by a first-time buyer was €171,663, and a second-time buyer, €219,478.
A year ago, the equivalent costs were €164,863 and €209,612, an increase of 4.1% and 4.7% respectively.
The average price paid for a new house in August 2002 was €194,725, while that paid for a second-hand house was €198,991. The equivalent prices in August 2001 were €188,643 and188,471.
