* House Price rises continue a gradual slowing begun in June this year.
* Lowest monthly national growth rate in almost five years.
* Prices for houses Outside Dublin fell, first time since December 2004.
* Rate of price growth falls to 0.1% for November – sixth consecutive decline in growth rate.
Wednesday 27th December 2006: House Prices nationally rose by just 0.1% in November – a reduction in the rate of growth for the sixth successive month. The last time a lower rate was recorded was January 2002. The figures further reinforce the view that the recent series of interest rate rises introduced by the European Central Bank (ECB) are having an impact on house price growth in Ireland. However due to the particularly strong growth in the first half of the year, the rate of growth so far this year at 11.7% is higher than was expected. It compares to 9.3% for the full year of 2005 and 8.0% for the same period last year (2005). However the year on year growth rates declined nationally and in all market sectors again in November, as it did in October.
Looking specifically at November the price of houses nationally rose by 0.1% during the month, down from the rate of 0.6% recorded in October this year and the 0.7%, 1.0%, 1.1%, 1.2% & 1.6% recorded in September, August, July, June & May respectively. The index also reveals that over the last twelve months (i.e.: from November 2005 to November 2006 inclusive) the growth in national prices was 13.1%. This is down significantly from the rate of growth to October ‘06 (14.2%).
The average price paid for a house nationally in November of this year was EUR310,409, more than EUR32,000 higher than that recorded for December 2005 (EUR277,852).
Commenting on the results, Niall O’Grady, Head of Marketing, permanent tsb said: “House prices were virtually unchanged in November, while cumulative growth in the last three months was less than that recorded in the month of May this year. We have now experienced six months of gradual slowing in house price growth, with 2006 now likely to finish with 11%-12% growth in national house prices.”
Dublin V Rest of Country
House prices in Dublin grew by 0.8%, while prices Outside Dublin fell by 0.1%. In October 2006 the relative price increases were 0.9% and 0.2%.
House prices grew by 16.8% and 12.4% in the twelve months to November 2006 in Dublin and Outside Dublin respectively. The equivalent rates to the end of October 2006 were 17.4% and 13.8% respectively. For the first eleven months of 2006 growth rates for Dublin and Outside Dublin were 15.9% and 11.0% respectively. The equivalent rates for October this year were 15.0% and 11.1%, while for November last year were 9.2% and 7.8%.
The average price paid for a house in Dublin and outside Dublin in November 2006 was EUR427,042 and EUR266,530 respectively. The equivalent prices at the start of 2006 were EUR368,576 and EUR240,201.
Commuter Counties: - Louth, Meath, Kildare & Wicklow
House prices in the commuter counties of Dublin grew by 0.6% in November 2006, compared to 0.8% in October 2006.
House price growth in the commuter counties year on year to November 2006 was 17.6%, down from that recorded to October 2006 (18.0%), while more than twice the rate recorded to November 2005 (8.1%). Growth in the first eleven months of this year was 15.9% compared to 8.6% last year. The price of a house in the commuter counties in November 2006 was euro346,391, up over euro45,000 from euro298,866 in December 2005.
3 Bedroom Semi-detached Houses
The average price for 3 bed semi-detached house showed no growth in November, down slightly from the rate in October 2006 (0.1%) while in November last year growth of 0.8% was registered.
House prices in this category grew by 14.8% in the twelve months to November 2006, down from 15.7% in October 2006, while that recorded in November 2005 was 8.9%. In the first eleven months of this year growth was 13.0% compared to 8.7% in same period last year. The price of a 3 bedroom semi in November 2006 was euro310,568, up over €35,000 from euro274,870 recorded in December 2005.
First time buyers V. Second time buyers
House prices for first-time and second-time buyers increased by 0.3% and 0.2% respectively in November 2006. In October 2006 the respective figures were 0.4% and 0.6% respectively.
House prices grew by 12.7% and 13.6% year on year to November 2006 for first-time and second-time buyers respectively. The equivalent rates to the end of October 2006 were 13.6% and 14.4% respectively. In the first eleven months of this year growth rates for first-time and second-time buyers were 12.1% and 12.3% respectively, while growth rates this time last year were 12.1% and 7.1%.
The average price paid by a first-time buyer and a second-time buyer in November 2006 was EUR279,597 and EUR349,465 respectively. The equivalent prices in December 2005 were EUR249,499 and EUR311,168.
New V. Existing Houses
Prices for new houses increased by 0.4% while existing house prices were unchanged in November 2006. In October 2006 new house prices fell by 0.4% while existing house prices rose by 0.8%.
New and second hand house prices each grew by 11.4% year on year to November 2006. The equivalent year-on-year rates of growth to October 2006 were 12.6% and 12.3% respectively. In the first eleven months of this year growth rates for new and existing houses were 9.3% and 10.2% respectively. The equivalent rates last year were 7.8% and 7.1%.
The average price paid for a new house in November 2006 was EUR301,778, while that paid for a second hand house was EUR312,709. The equivalent levels in December 2005 were EUR276,215 and EUR283,708.
View the full list of house prices.
Further Information:
Niall O’Grady
Head of Marketing
permanent tsb
087 2921998
Issued By:
Ray Gordon
MRPA KINMAN Communications
Ph: 6788330 / 087 2417373