The latest edition of the Irish Permanent House Price Index shows the rate of increase in national house prices is moderating. Over the last 12 months up to the end of March, national house prices rose by 19.1%, according to the latest index which was compiled in association with the ESRI. This was 0.7% lower than the rate of increase in the 12 months to the end of February (19.8%).
The latest survey also reveals that in the first quarter of this year, national house prices rose by 2.8%. This compares to a rise of 5.2% during the last quarter of 2000. Over the same period last year, prides rose by 4.7%.
The survey indicates that at a national level, the rate of increase in March was actually higher than had been recorded the previous month. House prices rose by 1.3% in March compared to a price hike of 0.4% in February.
Niall O'Grady, Head of Marketing at Irish Permanent, said the rise could be attributed to season factors. 'We noticed a similar rise in prices between February and March of 2000, so there may be an element of seasonality about the March figures,' he explained.
The index also reveals that Dublin house prices rose by 2.7% in March, compared with a 1.3% rise in February. Outside Dublin city and country, house prices were up 1.3% in March. In February, house prices nationwide showed no increase.
Analysis of the price per square in Dublin suggests that we are witnessing a slowdown in the higher end of the market. The rise in Dublin house prices is being driven by the lower end of the market, the survey suggests.
Meanwhile, house prices in Cork, which are measured quarterly, showed a rise of 5% for the first quarter of 2001, compared to 3.2% for the last quarter of 2000. The year on year increase in Cork moderated to 18.9% in the first quarter of 2001, down from 22.8% in the fourth quarter of last year.
