The price of new and second-hand property is moderating in line with expectation, the latest Permanent/TSB quarterly house price survey shows.
The value of house prices nationally rose by 6.8 per cent in the first eight months of this year, according the latest index published today. The figure compares to 9 per cent for the same period last year.
The index, compiled in association with the ESRI, shows that in August - traditionally a slow month for property sales - prices rose by 1.1 per cent, up a couple of points on the previous two months.
With the house selling season now well under way, Mr Niall O'Grady, head of marketing at Permanent/TSB, said the bank's expectation of 10 per cent growth for the year is likely to be on target.
"The significant increase in the supply of new property coupled with very strong annual growth levels over the past 8 years is leading to a moderation in the rate of price growth for 2004," he said.
The slower rate of growth is reflected in the 12 months up to August this year, when prices rose 11.5 per cent, compared to 15 per cent for the equivalent period in 2002/2003.
In August, Dublin house prices grew 1.6 per cent and 7.2 per cent over the first eight months of the year. The figure for homes outside the capital was 0.9 per cent last month and 7.7 per cent respectively.
The price of new, compared to second-hand homes is also moderating. Prices increased 1.3 per cent and 1.0 per cent, respectively. Over the first eight months the new-house market saw 9.3 per cent growth compared to 6.5 per cent for second-hand properties.
The figures mean the average price paid for a house nationally in August was €250,096, up over €16,000 compared to December 2003. The average price for a house in Dublin now stands at €329,384 while outside the capital the figure is €219,376.