Figures released today show that house prices continued to rise in October, but the rate of growth slowed for the fifth month in a row.
Today's latest figures from the Permanent TSB/ESRI house price index also show that new house prices slipped 0.4% in October, the first time new house prices have fallen in two years.
According to the index, house prices increased by 0.6% from the previous month, compared with a 0.7% rise in September. The annual rate of growth last month was 14.2%, down from 15% in September. The annual rate of growth slowed in all sectors last month, the first time in almost two years that this has happened.
Permanent TSB said recent interest rate rises by the European Central Bank were having an effect on growth, but the fact that prices were still rising highlighted the market's continued strength.
A breakdown showed that house prices in Dublin increased by 0.9% last month, with a rise of 0.2% elsewhere. The annual rates of growth were 17.4% and 13.8% respectively.
For first-time buyers, house prices climbed by 0.4% in the month and 13.6% in the year. House prices for second-time buyers grew by 0.6% in the month and 14.4% in the year.
Prices of new houses fell by 0.4% in October, though they are still showing annual growth of 12.6%. Prices of existing houses increased by 0.8% in the month and 12.3% in the year.
A note from Davy's Stockbrokers says that the price fall for new houses is not a surprise. The stockbrokers said that developers have left prices unchanged in order to maintain the volume of sales.
