House prices show signs of moderating, report shows

House prices have risen by 11 per cent in the last 12 months, according to the latest permanent tsb House Price Index.

House prices have risen by 11 per cent in the last 12 months, according to the latest permanent tsb House Price Index.

The figure is only marginally above the 10.4 per cent recorded for the same period last year and appears to indicate that house prices have stabilised.

The index, which is compiled in association with the ESRI, shows the average price of a house nationally increased by 1.4 per cent in October, compared 1.3 per cent in October 2002.

In August and September respectively, the rate of increase recorded was 0.8 per cent and 0.5 per cent.

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The index shows Dublin house prices grew by 1.8 per cent and by 15.2 per cent for the 12 months to October 2003.

The index says the average price paid for a house nationally in October of this year was €228,464, which is more than three times the price of €75,169 recorded in March 1996. The equivalent price recorded in October 2002 was €200,606.

The average price paid for a house in Dublin in October was €301,855 compared with €198,212 outside Dublin.

Mr Niall O'Grady, head of marketing with permanent tsb said: "The relative strength of the price rises in October compared to September show just how difficult it is to draw too many conclusions from what happens in any one month."

Mr O'Grady said: "However the longer-term trend does support the contention that the rate of price growth is moderating - slowly but pretty consistently."