House prices are continuing to rise, but the rate of increase has slowed down, according to figures released by the Department of the Environment yesterday.
The price of new houses throughout the State rose by 5.6 per cent during the 12 months up to the end of September, compared to an increase of 12.2 per cent in the year up to the end of June.
The slow-down was more marked for second-hand houses, with average prices rising by 3.4 per cent in the year to September, compared to increases of 12 per cent in the year up to June.
The average price of new houses nationally at the end of September was £140,876 while the average price of second-hand houses was £160,883.
There has also been a moderation in the rate of house price increase in Dublin, but to a lesser degree. New houses in the city, at an average cost of £185,415, increased by 6.7 per cent in the 12 months to the end of September, compared to a rise of 10.9 per cent in the year to the end of June.
The average second-hand Dublin house in the third quarter this year cost £210,348, an increase of 4.8 per cent in the year to September, compared with a rise of 12.4 per cent in the year to the end of June, based on returns from all mortgage lending agencies.
The Minister for Housing and Urban Renewal, Mr Molloy, said the continued moderation in house prices was "clear evidence of the effectiveness of Government action in dealing with rapidly rising and unsustainable house price increases".
He added: "For those considering whether or not to make their first house purchase, these figures show that it is now an opportune time to buy a house," he said.
The Irish Permanent House Price Index, compiled in association with the Economic and Social Research Institute, has also indicated a slow-down in house price increases for several months.