The rate of house price inflation is showing signs of moderating but prices of new houses are continuing to rise at a double-digit pace, according to the latest report on the housing market.
The figures show prices outside Dublin have risen by 14.2 per cent in the 12 months to February while Dublin prices have risen by 11.2 per cent since February 2003.
The latest edition of the permanent TSB house price index shows that house prices rose by a national average of 13.3 per cent for the twelve months to February, slightly down on the he 13.4 per cent registered in January.
The rate of inflation is significantly lower than that recorded in July and August last year when rates of 15.6 per cent and 15 per cent were experienced.
House prices outside Dublin rose by 1 per cent in February while Dublin prices rose by 0.4 per cent. The year on year growth rates also continue to diverge with a full 3 per cent now separating Dublin from the rest of the country. Despite signs of cooling in the market the demand for new home remains robust.
Prices for new houses rose by 1.8 per cent and have risen by 13.6 per cent since February 2003.
Commenting on the results, Mr Niall O'Grady of permanent tsb said the February figures are "marginally higher than expected" but the overall trend is still of moderation. "We see no reason to alter are projections of national price growth for the year of approximately 8 per cent," he said.
Mr O'Grady said the increase in prices of new houses "must be of some concern" given the number of houses built last year.
"Trends in this sector will be watched carefully in the months ahead," Mr O'Grady said.
The average price paid for a house in Dublin and outside Dublin in February 2004 was €309,347 and €207,335 respectively.
The average price paid for a new house in February 2004 was €229,887, while that paid for a second hand house was €243,162. The equivalent prices in February 2003 were €202,391 and €215,630.