• Latest figures show house price growth of 1.0% in February, slightly down from that recorded in January of this year (1.2%)
• Year to date growth of 2.2% almost four times the level in 2005 (0.6%)
• The year on year growth rate to February this year has climbed to 11.1%, up from 10.2% in January 2006 and 7.9% recorded to February last year

The average price paid for a new house in February 2006 was €281,414, while that paid for a second hand house was €288,879. The equivalent levels in December 2005 were €276,215 and €283,708.

House prices continue to climb, rising by 1.0% in February this year, according to the latest edition of the permanent tsb / ESRI House Price Index. Prices have now grown by approximately 1% each month since July 2005.  In the first two months of 2006 prices have risen by 2.2%, compared to just 0.6% in 2005. Growth of 2.8% in the first two months of 2000 was the last occasion house prices grew at a faster rate than this year’s rate.

According to the index, the year on year price growth rate for First Time Buyers rose to 13.5% in February, down from that recorded in January ‘06 (13.9%) and as such the only category to experience a drop. The year to date growth rate for a First Time Buyer at 1.6% is also the lowest across all sectors.

Looking specifically at February, the price of houses nationally rose by 1.0% during the month, down marginally from the rate of 1.2% recorded in each of the previous four months back to October last year though still over three times the rate in February 2005 (0.3%). The index also reveals that over the last twelve months (i.e.: from February 2005 to February 2006 inclusive) the growth in national prices was 11.1%, up on the rate of growth in the twelve months to January ‘06 (10.2%) and also that recorded in the twelve months to February 2005. (7.9%).

The average price paid for a house nationally in February of this year was €284,096, up over €6,000 on that recorded for December 2005 (€277,852).

Commenting on the results, Niall O’Grady, Head of Marketing, permanent tsb said: "It has been a very strong start to 2006 with prices growing so far this year at rates not seen since 2000.  The strong growth trend from the second half of 2005 has continued into the first two months of 2006 driven by confidence in the economic outlook and the imminent first tranche of SSIA maturities.  Going forward, we expect that this will be balanced somewhat by the recent ECB rate increase." 

Dublin V Rest of Country

Dublin house prices grew by 1.5% in February while there was growth of 0.9% for houses bought outside Dublin. In January 2006 the relative price increases were 1.2% and 1.5%. 

House prices grew by 12.2% and 11.2% in the twelve months to February 2006 in Dublin and Outside Dublin respectively. The equivalent rates to the end of January 2006 were 11.0% and 10.6% respectively. Year to date growth rates for Dublin and Outside Dublin have grown by 2.8% and 2.4% respectively. The equivalent rates last year were 0.8% and 0.5%.

The average price paid for a house in Dublin and outside Dublin in February 2006 was €378,822 and €245,925 respectively. The equivalent prices in January 2006 were €373,096 and €243,826.

Commuter Counties: - Louth, Meath, Kildare & Wicklow

House prices in the commuter counties of Dublin grew by 1.2% in February 2006, compared to 1.9% in January 2006.

House price growth in the commuter counties year on year to February 2006 was 12.2%, up from that recorded to January 2006 (11.9%), and more than twice the rate recorded to February 2005 (5.8%). Growth year to date was 3.1% compared to 1.3% last year. The price of a house in the commuter counties in February 2006 was €o308,175, up almost €o10,000 from €o298,866 in December 2005.

3 Bedroom Semi-detached Houses

3 bed semi-detached house prices grew by 1.6% in February 2006, up on the rate in January 2006 (1.1%) while in February last year growth of just 0.3% was registered.

House prices in this category grew by 12.7% in the twelve months to February 2006, up from 11.3% in January 2006 and nearly double that recorded in February 2005 (6.4%). Year to date growth was 2.8% compared to 0.6% in same period last year. The price of a 3 bedroom semi in February 2006 was €o282,456, up from €o274,870 recorded in December 2005.

First time buyers V. Second time buyers

House prices for first-time and second-time buyers increased by 0.9% and 1.0% respectively in February 2006. In Janaury 2006 the respective figures were 0.7% and 1.5%.

House prices grew by 13.5% and 10.6% year on year to February 2006 for first-time and second-time buyers respectively. The equivalent rates to the end of January 2006 were 13.9% and 9.6% respectively.  Year to date growth rates for first-time and second-time buyers were 1.6% and 2.6% respectively, while growth rates this time last year were 0.9% and 0.5%.

The average price paid by a first-time buyer and a second-time buyer in February 2006 was €253,459 and €319,230 respectively. The equivalent prices in December 2005 were €249,499 and €311,168.

New V. Existing Houses

House prices for new and existing houses each increased by 0.9% in February 2006. In January 2006 each rose by 1.0%.

New and second hand house prices grew by 10.9% and 9.5% respectively year on year to February 2006. The equivalent year-on-year rates of growth to January 2006 were 10.7% and 8.8% respectively.  Year to date growth rates for new and existing houses were 1.9% and 1.8% respectively. The equivalent rates last year were 0.9% and 0.7%.