ESRI/permanent tsb House Price Index June 2005

• permanent tsb / ESRI House price index reports growth of 2.5% in first half of 2005 – just over half that of the same period last year (4.7%) & the lowest in 9 years.
• Prices for First Time Buyers rising significantly faster (4.2%) as more purchase existing rather than new houses.
• Dublin Prices almost 55% higher than those outside Dublin - up from 15% 9 years ago.

Embargo: 11.30 am Wednesday 3rd August 2005. The value of house prices nationally rose by just 2.5% in the first half of this year according to the latest edition of the permanent tsb House Price Index. This rate of growth compares to 4.7% in the same period in 2004 and is the lowest rate of increase over the first half of a year in 9 years. However the average price paid by First Time Buyers rose by 4.2% over the six months as more First Time Buyers purchased existing rather than new houses. The index is compiled by permanent tsb in association with the ESRI

Looking specifically at June, the price of houses nationally rose by 0.6% during the month. This growth rate is up slightly on that recorded in recent months, though lower than the rate recorded a year ago in June 2004 (0.9%).

The index also reveals that over the last twelve months (i.e.: from June 2004 to June 2005 inclusive) the growth in national prices was 6.3%. This figure is down from the rate of growth in the twelve months to May ’05 (6.6%) and significantly lower than that recorded in the twelve months to June ‘04 (11.3%).

The average price paid for a house nationally in June of this year was EUR260,458, up just over EUR6,000 on that recorded in December 2004 (EUR254,215).

Commenting on the results, Niall O’Grady, Head of Marketing, permanent tsb bank: "It’s important to note that there are some significant variations in the rates of growth recorded in different categories of the housing market with some sectors continuing to show relatively strong growth. However taken as a whole, the performance of the market over the first six months of the year shows continued moderation and – at a national level – is the lowest rate of increase in 9 years. With year to date growth to June of 2.5%, this supports projections of an annual rate of increase of approximately 5% over the full year."

Dublin V Rest of Country:
Dublin house prices grew by 0.9% in June while there was growth of 0.3% for houses bought outside Dublin. In May 2005 the relative price increases were 0.8% and 0.6%.

Dublin house prices grew by 3.5% in the first half of 2005, while the equivalent growth rate outside Dublin was 2.3%. In the first six months of 2004 Dublin and Outside Dublin house prices grew by 4.2% and 5.8% respectively. House prices grew by 8.2% and 4.3% in the twelve months to June 2005 in Dublin and Outside Dublin respectively. The equivalent rates to the end of May 2005 were 7.5% and 5.3% respectively.

The average price paid for a house in Dublin and outside Dublin in June 2005 was EUR346,576 and EUR224,938 respectively. The equivalent prices in June 2004 were EUR320,498 and EUR215,727.

Commuter Counties: - Louth, Meath, Kildare & Wicklow
House prices in the commuter counties of Dublin fell slightly by 0.1% in June 2005, down from growth of 1.3% recorded in June 2004. Growth in the first half of this year has been relatively strong in the Commuter counties, up 3.0% to June 2005. The equivalent growth rate to June 2004 was 4.5% for Commuter counties.

House price growth in the commuter counties year on year to June 2005 was 4.5%, down from that recorded in May 2005 (5.9%) and June 2004 (11.4%). The price of a house in the commuter counties in June 2005 was euro279,268 up from euro267,265 in June 2004

3 Bedroom Semi-detached Houses
3 bed semi-detached house prices grew by 1.0% in June 2005, while in June last year growth of 0.7% was registered.

House prices in this category grew by 6.0% in the twelve months to June 2005, up from 5.7% to May 2005. House price growth in the first six months of 2005 was 3.5% compared with 4.1% in 2004. The price of a 3 bedroom semi in June 2005 was euro257,691, up from euro243,059 recorded in June 2004.

First time buyers V. Second time buyers:
House prices for first-time buyers increased by 1.2%, while prices rose by 0.4% for second-time buyers in June 2005. In May 2005 the respective changes were 0.3% and 0.4%.

Over the first half of this year house price growth for first-time and second-time buyers was 4.2% and 1.9% respectively. The equivalent growth rates over the same period in 2004 were 4.2% and 5.1%. House prices grew by 8.0% and 5.7% year on year to June 2005 for first-time and second-time buyers respectively. The equivalent rates to the end of May 2005 were 8.3% and 5.9% respectively

Part of the explanation for the rate of growth in prices for FTB’s over the year to date may be the increasing percentage of FTB’s buying existing as opposed to new houses. 54% of FTB’s bought existing houses in 2005 as opposed to 47% a year ago.

The average price paid by a first-time buyer and a second-time buyer in June 2005 was EUR230,688 and EUR292,775 respectively. The equivalent prices in June 2004 were EUR213,566 and EUR277,010.

New V. Existing Houses
House prices for new houses increased by 0.4% in June 2005, while second-hand prices rose by 0.8%. In May the relative price change was 0.8% and 0.5% respectively for new and second hand houses.

Over the first half of this year new and second hand house prices have grown by 2.9% and 2.4% respectively. The equivalent growth rates over the same period in 2004 were 6.9% and 4.5%.

New and second hand house prices grew by 8.3% and 6.5% respectively year on year to June 2005. The equivalent year on year rate of price growth to May 2005 were 9.0% and 6.4%.

The average price paid for a new house in June 2005 was EUR258,667, while that paid for a second hand house was EUR268,421. The equivalent levels in June 2004 were EUR238,970 and EUR252,041.