According to my Department's house price data, which compile average house prices on the basis of loan approvals by all mortgage lending agencies, the average price for a new house in Dublin in the first quarter of 1997 was £84,001, while the average new house price in the first quarter of this year was £162,044. The average mortgage interest rate in the first quarter of 1997 was 6.9% and in the first quarter of this year it was 4.6%.
While average house prices have increased significantly over this period, the Government has acted decisively to restore balance to the market and my Department's house price statistics show a welcome moderating trend in house price increases which, given the continued very strong demand for housing, is firm evidence of the effectiveness of measures taken by Government to address the issue.
Average house prices for the first quarter of 2000 indicate a significant moderating trend of price increases on previous quarters, with Dublin house prices showing reductions of 1.1% and 2.7% in the average prices for both new and second-hand homes respectively, the first quarter that average prices have dropped since 1995. Year on year house price increases – March 2000 compared to March 1999 prices – are also significantly lower than in previous quarters, with annual new and second-hand house price increases in Dublin of 13% and 17%, well below the peak inflation rates of 37% and 41% respectively in mid-1998, just prior to the publication of the Government's policy document, Action on House Prices.
The March 2000 Quarter Housing Statistics Bulletin will be published in the next few days. Summary house price data were published on Monday last.