The latest Irish Permanent House Price Index suggests that house prices nationally are now rising at only moderate levels with many sectors seeing a reduction in prices.
The figures show that for the 10th consecutive month the annual rate of growth in house prices has slowed, falling from 12.1 per cent in September to 10.1 per cent in October. This is the lowest year-on-year increase since the index started.
The survey, which is compiled in association with the ESRI, reveals that for the first 10 months of 2001 house prices rose by just 5.7 per cent, compared with 16.5 per cent for the same period last year.
Nationally, house prices actually fell by 0.8 per cent in October, compared with growth of 1 per cent in October 2000. This represents the second consecutive month where there has been a drop in national house prices.
Prices for first-time and second-time buyers dropped in October for the first time since 1996. The survey found prices for first-time buyers dropped by 1.2 per cent while those for second-time buyers dropped by 0.4 per cent during the month.
Prices for first-time buyer have risen by 6.3 per cent this year to date while there has been a 5.5 per cent rise for second-time buyers. The corresponding growth rates last year were 18.4 per cent and 14.9 per cent respectively.
Dublin house prices have risen by 6.9 per cent year to date while the price houses bought outside Dublin has risen by 6.1 per cent. The corresponding figures for last year were 19.2 per cent and 16.3 per cent respectively.
Irish Permanent marketing chief, Mr Niall O'Grady, said: "With the changes we are witnessing in house prices and the historically low rates of interest, there has rarely been a better time for house buyers. As economic confidence returns, we expect this to feed into growing demand through next year."
