Figures from estate agent Sherry Fitzgerald show that the average price of a second-hand property in Ireland rose by 2.5% during the final quarter of the year, bringing the total increase for 2004 to just over 13%.
This followed growth of 14.6% in 2003 and 20% in 2002.
But the company said the pace of inflation in the Dublin second-hand market was stronger at 3.4% for the final quarter, bringing the rate of increase to 16.6% for the year, faster than the 12.4% recorded in 2003.
Sherry Fitzgerald's chief economist Marian Finnegan said 2004 proved to be 'surprisingly resilient', with the level of price growth far exceeding the estate agent's original expectations.
'The pace of inflation did ease somewhat as the year progressed with indications that the market was beginning to absorb the impact of increased supply,' she said.
Preliminary analysis by Sherry Fitzgerald shows that first-time buyers bought an estimated 36% of all the second-hand properties traded and closed during the year, while investors accounted for 20%.
Ms Finnegan expects house price inflation to slow to 10% in 2005, as interest rates rise.
