More evidence that the rate of growth of house prices has slowed emerged today, with the Irish Permanent House price index showing prices in the first seven months of the year have increased by 5.9% compared with 12.5% in the same period last year.
Houses in the higher end of the Dublin market are actually getting cheaper, with the average price per square foot for houses costing over £300,000 - down 5.7% this year. Those below £300,000 have increased 8.5%.
This suggests there is still a healthy demand from first time buyers in Dublin. Houses prices in the Dublin area rose 7.2%, while outside Dublin there has been an average increase of 6.1% in the year to date.
In July prices rose 1% compared with 1.3% in July 2000, and a 0.3% growth in June 2001.
'The strong growth levels over the last four years are being replaced by more moderate and sustainable levels of house price increases,' said Niall O'Grady head of marketing at the Irish Permanent.
The index is compiled on a monthly basis by Irish Permanent in association with the ESRI.
