House prices rose at the slowest level in nearly three years in October. Nationally, prices increased by just 0.3 per cent in the month reports Dominic Coyle
That compared to monthly growths rates of around 1 per cent over the summer and 1.3 per cent in the same month last year. The last time, the value of houses rose so slowly was in January 2002, when prices actually fell 0.9 per cent.
The annual rate of increase in October was 10.8 per cent, according to the Permanent TSB House Price Index, produced in association with the Economic and Social Research Institute (ESRI). This compares to 12 per cent year-on-year in September and 13.8 per cent at the same time last year.
Mr Niall O'Grady, head of marketing at Permanent TSB, said house prices were likely to end the year close to 10 per cent ahead of 2003.
"The rate of national house price growth continues to show signs of slowing," he said.
This was being "driven by a reduction in house prices outside Dublin, while Dublin prices have remained robust".
The average price of a house nationally last month was €253,100, up from just over €234,000 at the end of last year and €228,430 12 months ago.
House prices in the capital were 1 per cent ahead last month. However, elsewhere, prices actually fell by 0.5 per cent according to the data.
Despite the monthly fall, house prices outside Dublin have risen faster over the past year, up 11.5 per cent compared to a rise of 10.6 per cent in the capital.
The average price of a house in the city is now €333,918 whereas, elsewhere, it is €220,932.
The new homes market continues to grow faster than demand for second-hand properties.
On a monthly basis, new homes appreciated by 0.8 per cent while existing properties were just 0.2 per cent ahead. Over the year to date, new house prices have climbed by 11.8 per cent while the rise for second hand homes has remained in single digits at 7.5 per cent.
The average price for a new home in the State last month was €250,002, compared to €259,429 for an existing property.
First-time buyers saw prices jump by 1.1 per cent in October while prices stood still for existing homeowners moving elsewhere.
Fine Gael last night said the Government had disclosed that the Exchequer was taking 28 per cent of the price of a new house in tax.
