House prices outside Dublin fall

THE average price of a house broke the €250,000 mark for the first time in October, the latest permanent tsb/ESRI House Price Index reveals.

The index shows house prices grew by 8.1% in the first 10 months of 2004 down from 10.9% over the same period last year, the smallest rate of increase in almost three years.

However, the increase masks a 0.5% fall in the price of houses outside Dublin in October.

The average price paid for a house nationally in October was €253,100, up over €19,000 on the average in December 2003.

The average price paid for a new house last month was €250,002, while second-hand houses fetched an average of €259,429.

House price growth in Dublin in October was just 1%. Nationally prices rose by just 0.3%.

The average price paid for a house in Dublin in October 2004 was €333,918, and €220,932 outside Dublin. The equivalent prices last year were €301,855 and €198,212.

Permanent tsb head of marketing Niall O'Grady said: "The rate of national house price growth continues to show signs of slowing and looks likely to end the year close to 10%. This slower rate is being driven by a reduction in house prices outside Dublin, while Dublin prices have remained robust."

The price of houses in Dublin grew by 8.6% in the first 10 months of 2004, while outside Dublin it was 8.4%. In the first 10 months of 2003, Dublin and outside Dublin house prices grew by 10.7% and 9.9% respectively.

House prices grew by 10.6% and 11.5% in the 12 months to October 2004 in Dublin and outside Dublin respectively. The equivalent rates to the end of September 2004 were 11.5% and 13.7% respectively.

The index shows from October 2003 to October 2004 the growth in prices nationwide was 10.8%, down from the 12% recorded in September 2004. The comparable growth rate in the 12 months to October 2003 was 13.8%.

House prices grew by 11.9% and 10.5% year on year to October 2004 for first- and second- time buyers respectively. The equivalent rates to the end of September 2004 were 11.9% and 12.2% respectively.

The average price paid by a first-time buyer and a second-time buyer in October 2004 was €223,361 and €285,216 respectively. The equivalent prices in October 2003 were €199,690 and €258,152.

House prices for new and second-hand houses increased by 0.8% and 0.2% respectively last month.

Over the first 10 months of this year new and second-hand house prices have grown by 11.8% and 7.5% respectively.

The average price paid for a new house in October 2004 was €250,002, while a second-hand house was €259,429.