First-time buyers paid less on average for properties in the first month of the year than they did in December, according to new figures from Permanent TSB. Laura Slattery reports.
House prices nationally rose by just 0.4 per cent in January; however, prices for first-time buyers actually fell by 0.4 per cent over the same month, compared to growth of 1.1 per cent in the same month last year.
The Permanent TSB/ESRI house price index shows that first-time buyers paid an average of €220,589 for houses during January 2005, while second-time buyers paid €288,239.
Overall, the average price of a house nationally in January was €255,107, up almost €20,000 on January of 2004, when the average price paid was €235,156.
In the 12 months to the end of January, house prices rose by 8.5 per cent; however, the rate of growth in the market is continuing to slide. Growth of 9.8 per cent and 8.6 per cent were recorded over the 12 months to the end of November and December respectively.
The 8.5 per cent growth rate over the 12 months to the end of January 2005 is significantly down from the 13.3 per cent growth rate recorded over the 12-month period to the end of January 2004.
"The trend of moderation which characterised last year appears to be continuing," said Mr Niall O'Grady, head of marketing at Permanent TSB.
"And while we should be careful not to make too many assumptions on the basis of just one month's figures, a rate of growth in national prices of 0.4 per cent is very consistent with our forecast of annual growth of between 5 per cent and 7 per cent for the current year."
The 0.4 per cent growth in national prices last month is the same as that recorded in January 2004 and follows similarly modest price increases of 0.3 per cent in October and November and 0.2 per cent in December 2004.
The average price of a house in Dublin was €336,028 in January, compared to €220,550 outside Dublin. Over 12 months, house prices rose by 9 per cent in the capital and 7.4 per cent in the rest of the country.
In the "commuter counties" of Louth, Meath, Kildare and Wicklow, the average paid for a house in January 2005 was €272,164, up from €257,466 a year ago.
Second-hand house prices increased at a faster rate during January than new properties, rising in value by 0.4 per cent compared to 0.3 per cent.
The average price of a new house in January 2005 was €251,951, while the average price paid for a second-hand house was €263,251. A year ago, these prices were €225,805 and €241,819 respectively.
The price of a three-bedroom semi-detached house was €248,324 in January 2005, compared to a price tag of €232,582 in January 2004.
