The latest Permanent TSB/ESRI survey shows that house prices continued to rise last month and are up 12.2% so far this year. This compares with a rise of 11.9% in the first 11 months of 2002.
The monthly rise in November was 1.2%, while house prices are 13.6% higher compared with November 2002. The average price paid for a house in November was €231,109.
The report shows that prices in Dublin are starting to ease significantly. Prices in Dublin rose by 0.5% in November, compared with growth of 1.4% elsewhere. The annual rate of growth was 13.6% in Dublin and 12.5% elsewhere. The Dublin rate is slower than the 16% and 15.2% rates recorded in the previous two months.
Prices for first-time buyers were 1.7% higher in November, with a 0.6% rise for second-time buyers. The annual growth rates were 14.4% and 13.2% respectively.
The price of new houses fell by 0.6% in November, while second-hand prices increased by 1.6%. The annual rises were 10.5% and 14.4% respectively.
Permanent TSB's Niall O'Grady said house price growth for the year would come in at around 13%, higher than most commentators had predicted at the start of 2003. But he said that if the current trend continued, the rise in 2004 was likely to be around 6-8%, pointing to 'clear evidence of moderation', particularly in Dublin.
