The latest housing survey released today by permanent tsb shows that house prices are continuing to rise despite growing concerns that the level of property inflation is unsustainable.
The house price index compiled by Permanent TSB in conjunction with the ESRI reveals that house prices nationally grew by 1.7 per cent during the month of May.
This follows increases of 1 per cent in national prices in March and 1.3 per cent for the month of April. The monthly growth rate for May 2002 was 0.5 per cent.
Commenting on the results, Mr Niall O'Grady, of Permanent TSB said the residential property market has not seen the kind of moderation in terms of price growth which had been expected.
"It's likely that we will now be looking at full year growth in the current year somewhere around the early teens — as against forecasts of high single digit growth made just a few months ago.
"While that's still a long way off the extraordinary type of growth we saw two or three year's ago, it does demonstrate that the market remains surprisingly strong."
In the first five months of this year national house prices have grown by 5.8 per cent. This compares to growth of 5.1 per cent in the first five months of 2002.
The year-on-year increase in national prices to end May 2003 was 14.1 per cent. In the twelve months to the end of April, national prices rose by 12.7 per cent.
The average price paid for a house nationally in May of this year was €217,803. The equivalent price in May 2002 was €190,879.
Dublin house prices rose by 1.9 per cent in May while there was growth of 1.7 per cent for houses bought outside Dublin. In April the relative price increases were 0.4 per cent and 1.3 per cent.
House prices grew by 15.8 per cent and 11.9 per cent year on year to May 2003 in Dublin and outside Dublin respectively.
The average price paid for a house in Dublin in May was €285,216, while the equivalent price for a house outside Dublin was €189,236. The equivalent prices in May 2002 were €246,275 and €169,166.
House prices grew by 10.5 per cent and 16.1 per cent year on year to May 2003 for new and second hand houses respectively.
The average price paid for a new house in May 2003 was €211,140, while that paid for a second hand house was €223,464. The equivalent prices in May 2002 were €191,059 and €192,425.