House price rise pace 'more stable'

House prices are continuing to rise throughout the State but at a more stable rate than in the past, according to the latest Permanent TSB/House Price index.

House prices nationally rose by 0.9 per cent in September, but this was the same level of growth as recorded in June and July. Prices rose by 1.1 per cent in August.

Permanent TSB said monthly growth remained "robust", but was stable. The bank produces the index in association with the ESRI.

In the first nine months of this year, house prices rose nationally by 7.8 per cent.

This compares with 9.4 per cent in the same period last year.

The average price paid for a house nationally in September was €252,431, up more than €18,000 on the price recorded in December 2003.

Mr Niall O'Grady, head of marketing at the bank, said while trends were more stable now, strong demand was still evident in the market.

"House price growth has continued at a constant and robust level and looks likely, three quarters into 2004, to finish the year at approximately 10 per cent.

While this is below growth recorded in recent years it underlines that the market continues to be underpinned by strong demand levels across the market".

When studied on a regional basis, Dublin house prices grew by 0.4 per cent in September while prices outside Dublin rose by 1.2 per cent.

In August the Dublin figure was 1.6 per cent, while outside the capital it was 0.9 per cent.

Dublin house prices grew by 7.6 per cent in the first nine months of the year, while outside the capital they were up by 9 per cent.

During the same period in 2003 the figures respectively were 8.7 per cent and 8.3 per cent.

The average price paid for a house in Dublin in September was €330,603 and €222,077 outside Dublin. House prices for first time buyers increased by 1.2 per cent in September.

They increased by 0.9 per cent for second time buyers. In August prices for first time buyers rose by 1.8 per cent, while prices for second time buyers rose by 0.8 per cent.

The average price paid by a first-time buyer in September was €220,985, while the average for a second-time buyer was €285,216.

Reacting to the latest figures the Labour Party spokesman on Environment & Local Government, Mr Eamon Gilmore TD, said prices for first-time buyers were still rising at an alarming rate.