The rate of house price growth has halved in the last 12 months, according to the latest edition of the Permanent TSB House Price Index.
The annual rate of increase in prices to the end of February 2005 was 7.9 per cent nearly 5.5 per cent lower than the 13.3 per cent growth in prices recorded in the 12 months to February 2004.
The rate continues the steady decline observed in the preceding three months where the annual rate of growth fell from 9.8 per cent in November 2004 to 8.6 per cent in December and to 8.5 per cent in January.
The index, which is compiled in conjunction with the ESRI, showed the value of house prices nationally rose by 0.3 per cent last month down significantly from growth of 0.9 per cent in February 2004.
Permanent TSB bank's Niall O'Grady said: "The overall trend suggests national house price growth of just 5 per cent for the current year - almost half of the rate of growth recorded last year."
Mr O'Grady said: "After some extraordinary years, house prices at last appear to be returning to an acceptable level of growth.
The index shows the average price of a house nationally in February was €255,776, up just over €18,000 on February 2004.
The survey shows house prices in Dublin and outside of Dublin increased by 0.4 per cent and 0.3 per cent respectively in February 2005, compared with 0.3 per cent and 1.0 per cent in 2004.
Annual house price growth in Dublin and outside of Dublin was 9.2 per cent and 6.6 per cent. The equivalent rates to the end of January were 9 per cent and 7.4 per cent respectively.
The price of a house in Dublin and outside Dublin in February was €337,535 and €221,123 respectively. The equivalent prices in February 2004 were €309,347 and €207,335.
House prices in Dublin commuter counties - Louth, Meath, Kildare & Wicklow grew by 0.9 per cent in February , the same level as recorded in February 2004.
House price growth year on year to February 2005 was 5.8 per cent slightly up from the 5.7 per cent in January 2005.
The price of a house in the commuter counties in February 2005 was €274,614 up from €259,670 in February 2004.
The index showed house prices for first-time buyers grew by 1.3 per cent, while prices for second-time buyers rose by just 0.2 per cent in February 2005.
In February 2004 the respective increases were 0.7 per cent and 1.0 per cent. The price of a house for a first-time buyer and a second-time buyer in February 2005 was €223,361 and €288,743 respectively.
