House prices rose by just 0.5 per cent in May, compared to 2.9 per cent in April, according to the latest permanent tsb house price index published today.
With a rise in prices so far this year of 5.1 per cent, the rate of increase is already higher than the rate of increase recorded over the full 12 months of last year.
Commenting on the results, Mr Niall O'Grady general manager of marketing at permanent tsb said: "It is too early to say whether the lower rate of increase recorded in May is a one-off or whether it will be echoed in the coming months when the market is often quieter.
The most significant trend is that the year-on-year rate of increase is continuing to rise and, based on current activity levels, we expect the full year increase to be higher this year than last.
Dublin house prices rose by 1.7 per cent in May 2002 while there was no growth experienced in the price of houses bought outside Dublin city. The corresponding growth rates for the month of April 2002 were 2.0 per cent and 3.4 per cent respectively. For May 2001 the respective growth rates were 0.5 per cent and 0.4 per cent.
The average price paid for a house in Dublin in May was €245,840 while the equivalent price for a house outside Dublin was €169,093.
For the month of May prices increased by 1.2 per cent for first-time buyers while prices for second-time buyers did not experience any growth. In April the comparative price increases were 1.8 per cent for first-time buyers and 3.4 per cent for second time buyers.
The average price paid by a first-time buyer and a second-time buyer in May 2002 was €168,435 and €213,716 respectively. The equivalent prices in May 2001 were €158,887 and €205,771.
New house prices fell by 0.6 per cent in May. This compares with increases in April this year of 2.4 per cent for new houses and 3 per cent for second hand houses.