The latest house price statistics suggest the residential market is entering a flat period, with only moderate monthly rises in prospect, particularly in Dublin.
The figures from the monthly Permanent TSB/ESRI index reveal house prices nationally rose by 1 per cent in March. However, in Dublin they increased only by 0.1 per cent.
Mr Niall O'Grady of Permanent TSB said price rises were moderating, but they would still increase nationally by almost 10 per cent for the year as a whole.
In the first quarter of the year, prices grew nationally by 2.7 per cent, up from the 1.7 per cent recorded in the first quarter of 2002. However, prices rose by 4 per cent during the last quarter of 2002.
Prices for new houses rose by 1.6 per cent nationally in March, but the rise was more modest for second-hand homes at 1.0 per cent.
The latest figures suggest that price growth will continue, though it will be sluggish in Dublin. "The details of this month's index suggest that the rate of increase in prices is indeed moderating and that is reflected particularly in the mere 0.1 per cent recorded in the price of houses in Dublin," said Mr O'Grady.
Dublin price increases have been moderating for some time and last month they only rose by 0.9 per cent. Prices rose outside Dublin by 0.3 per cent in March and by 1.2 per cent in February.
While the latest figures may prompt concern among homeowners that a property slump could be on the way, the auctioneering sector last night said the figures did not tally with what was happening on the ground.
Mr Simon Ensor of Sherry FitzGerald said there was plenty of demand, with activity strongest in new home buying and among those trading up. He said March was traditionally a time when supply increased and this was likely to be behind the moderate increases in that month.
He said people should not take one month in isolation and look instead at the year as a whole.
"Realism has entered the market. It is a nice market to work in because vendors look and get realistic prices," he said. He added that there was no evidence to support the contention that prices were on a permanent downwards spiral.
The latest figures were released on a day when a house on St Mary's Road in Ballsbridge was sold at auction for €5.1 million by Jackson Stops, the highest price obtained for an Irish property this year.
The Permanent/TSB index said the average price of house in March in Dublin was €278,595, compared with €236,954 in March 2002. Outside Dublin the average price this March was €183,689, compared with a March 2002 price of €163,474.
In terms of different sectors, house prices increased nationally for second-time buyers by 0.6 per cent in March, while prices rose by 1.4 per cent for first-time buyers in the same month.
Permanent TSB compiles the figures based on new mortgages taken out in the previous month by Permanent TSB customers.
