House prices nationally increased by 9.3 per cent last year to reach a 0.7 per cent rise in the rate of growth over 2004, according to the Permanent TSB/ESRI house price index published today.
The index showed that the rate of growth accelerated dramatically as year continued with first-time buyers experiencing the highest rate of price increases (over 50 per cent higher than rate of growth for second-time buyers).
House prices grew by 10.1 per cent and 9.2 per cent in the 12 months to December 2005 in Dublin and outside Dublin respectively.
House prices grew by 10.1 per cent and 9.2 per cent in the 12 months to December 2005 in Dublin and outside Dublin respectively. The equivalent rates in 2004 were 8.9 per cent and 8.0 per cent respectively.
The average price paid for a house in Dublin and outside Dublin in December 2005 was €368,576 and €240,201 respectively. The equivalent prices in December 2004 were €334,822 and €219,978.
Dublin house prices grew by 0.8 per cent in December 2005, while there was growth of 1.3 per cent for houses bought outside Dublin. In November 2005, the relative price increases were 1.3 per cent and 1.1 per cent.
On a county-by-county analysis, the index reveals that Co Kerry set the pace for price growth during the year - with a rise in average prices of 15 per cent. This compares to an average rise of just 2 per cent for houses in Co Leitrim.
The index also revealed that the average price of a house for a first-time buyer now touches €250,000.
Niall O'Grady, head of marketing, Permanent TSB bank said: "At a regional level the rate of growth in some counties was particularly striking with Kerry, Cavan, Kilkenny and Monaghan each experiencing growth of 14 per cent or more."
House prices in the commuter counties of Dublin - Louth, Meath, Kildare and Wicklow - grew by 1.5 per cent in December 2005, compared to a drop of 0.4 per cent in December 2004.
Annual growth in 2005 in the commuter counties at 10.2 per cent was just above Dublin levels (10.1 per cent). The equivalent growth rate in 2004 was 6 per cent for the commuter counties of Dublin.
