Irish house prices are slowing down, according to new report from Permanent TSB and the ESRI.
Property prices nationwide rose by 8.4 per cent in the first 11 months of this year, which is a decrease on last year's figure of 12.2 per cent for the same period.
The Permanent TSB House Price Index, compiled in association with the ESRI, showed that houses prices grew by just 0.3 per cent last month. This matched figures recorded in October but was significantly lower than June and July (0.9 per cent), August (1.1 per cent) and September (1.0 per cent). November 2003 saw a growth of 1.2 per cent.
The report also contained a new Dublin Commuter Index issued, which looked at property prices in the counties of Louth, Meath, Kildare and Wicklow. It found that the price of a house across these counties reached €272,000 in November, which is €60,000 less than Dublin prices.
November 2004 saw a 0.5 per cent decrease in house prices in these areas, and the commuter belt saw a 6.5 per cent increase in prices for the first 11 months of 2004, compared with 13.2 per cent for the same period last year. The study also revealed that a house in the commuter belt will cost property buyers €272,409, up from €252,076 in November 2003.
Nationally, a house cost €253,769 in November of this year, an increase of nearly €20,000 figures recorded in December 2003 (€234,066).
The slowdown in house prices has been attributed to increased supply, with the impact being particularly felt in the commuter counties.
Mr Niall O'Grady, Head of Marketing at Permanent TSB bank said; "There has been a marked slowdown in the rate of house price growth during October and November.
"If this continues it is likely the 2004 growth will be just below 9 per cent, slightly below previous predictions. This slowdown in the national growth rate is reflected across all categories and areas."
Second-hand houses increased in price by 0.5 per cent in November 2004, while new houses saw a drop of 0.3 per cent in price. The report also showed that over the first 11 months of this year, new and second-hand house prices have grown by 11.4 per cent and 8.1 per cent respectively.
The equivalent growth rates over the same period in 2003 were 9.8 per cent and 13 per cent.
The price of a new house in November 2004 was €249,135 while a second-hand house cost €260,778. The equivalent prices in November 2003 were €221,472 and €238,386.