Irish house prices are continuing to cool, indicating the property market is on course for a soft landing, according to the latest survey.
The January edition of the Permanent TSB House Price Index shows that over the 12 months to the end of January 2005 the growth in national prices was 8.5 per cent.
This is down from the rates of growth recorded in the 12 months to the end of November (9.8 per cent) and December (8.6 per cent) 2004.
The value of house prices nationally rose by 0.4 per cent in January. This rate of growth is in line with growth of 0.4 per cent in January 2004 and is broadly similar to the rate recorded in October (0.3 per cent), November (0.3 per cent), and December (0.2 per cent).
The year-on-year growth rate for January is in marked contrast to the 13.3 per cent growth in prices recorded in January 2004. The price of a house nationally in January of this year was €255,107. This is up just under €20,000 on that recorded in January 2004 (€235,156).
Although one month's return is a narrow basis for an annual forecast, Mr Niall O'Grady, head of marketing at Permanent TSB, said a rate of growth in national prices of 0.4 per cent is "very consistent" with Permanent TSB's forecast of a growth of between 5 per cent and 7 per cent for 2005.
House prices in Dublin and outside Dublin increased by 0.4 per cent and 0.3 per cent respectively in January 2005. House prices growth was 9 per cent and 7.4 per cent in the 12 months to January 2005 for Dublin and outside Dublin, respectively.
The price of a house in Dublin and outside Dublin in January 2005 was €336,028 and €220,550 respectively.
House prices for first-time buyers fell by 0.4 per cent, while prices for second-time buyers rose by 0.4 per cent in January 2005.
In January 2004 the respective increases were 1.1per cent and 0.2 per cent. House prices grew by 6.4 per cent and 9.2 per cent year on year to January 2005 for first-time and second-time buyers, respectively.
The price of a house for a first-time buyer and a second-time buyer in January 2005 was €220,589 and €288,239 respectively.
The index is compiled by Permanent TSB in association with the ESRI.