House prices rose marginally in July, according to the latest Permanent TSB/ESRI index, but the overall year-on-year increase was 15.6 per cent - the highest in three years.
Compared to this time last year the national average increase on the price of a house was €30,000, the survey found.
The latest increase continued the stabilising trend of recent months, maintaining the 1.1 per cent month-on-month increase registered in June. April and May saw increase of 1.3 per cent and 1.7 per cent respectively.
However, the rate of growth over the first seven months of the year is still the highest in three years. In the first seven months of 2003, house prices grew by 8.1 per cent, compared to 6 per cent in the first seven months of 2002 and 5.9 per cent over the same period in 2001.
While the slow down will be welcome, the year-on-year increase to the end of July 2003 was 15.6 per cent - still be a considerable worry, particularly as unemployment is on the rise. The International Monetary fund last month warned that houses in Ireland could over-valued by as much as 50 per cent.
Labour's environment spokesman, Mr Eamon Gilmore, today disputed the contention that prices ware stabilising and said a national housing authority was needed to co-ordinate local authorities' strategies.
Mr Gilmore was also concerned about effect increases are having on those hoping top enter the market for the first time. "Young families have simply been priced out of the housing market," he said.
The average price paid for a house nationally in July of this year was €222,628. The equivalent price in July 2002 was €192,591.
Mr Niall O'Grady, head of marketing with Permanent TSB, said: "The most important thing to emerge in this month's report is the considerable easing in the rate of growth of Dublin prices; in June Dublin prices rose by 2.5 per cent while in July that figure had moderated to just 0.6 per cent."If this continues it should feed in to a lower rate of growth for prices nationally over the coming months".
Prices outside Dublin rose 1.2 per cent for the month - double the rate for the capital. Although the increase in Dublin was slightly up on the 0.5 per cent experienced in June, prices outside Dublin fel by 1.3 per cent.
Compared to this time last year, prices grew by 16.5 per cent in Dublin and 13.7 per cent outside the capital.
The average price paid for a house in Dublin in July was €294,189, while the equivalent price for a house outside Dublin was €192,520.
The second-hand market continued to perform robustly matching the new house increase for the month at 1.4 per cent.
House prices for second-time buyers increased by 1 per cent, while prices for first-time buyers rose by 0.8 per cent compared to June.