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| The average price paid for a new house in March 2008 was € 286,614, while that paid for a second hand house was € 281,236. The equivalent levels in December 2007 were €290,296 and €284,608. |
Irish national average house prices fell by a further 0.7% in March according to the latest edition of the permanent tsb / ESRI House Price Index. This follows a similar reductions [0.8%] in February and [0.7%] in January. This continues to indicate some easing in the rate of reduction compared to the final quarter of last year, when the monthly average price change was -1.3% [October], -1.1% [November] and -1.5% [December].
In the first three months of 2008 average national prices fell by 2.2%.
This compares to a fall in prices of 3.9% in the last quarter of 2007. Measuring the rate of growth in the 12 months (year on year) to March, average national prices were down by 8.9%. This compares to a decline of 8.8% recorded in the 12 months to February.
The average price paid for a house nationally in March 2008 was €281,643. This compares to €287,887 in December 2007.
The index does not take account of volume/activity in the market which is significantly down, as reflected in stamp duty receipts and mortgage approvals.
Methodology
Dermot O'Leary, Chief Economist of Goodbody Stockbrokers,commented last November that the data are reflective of prices at the mortgage payment stage of the house-buying process. This can be some 3-4 months after a sales price is agreed, and, in a slower market, this lag could get extended further. Therefore, there is a significant lag between market prices and the official house price data. Secondly, the type of properties in the ptsb database may be concentrated towards the lower price range in the market.While recognising the fact that the ptsb data takes account of the different characteristics of the house, the average price in the country is well below the estimates contained in the dataset from the Department of the Environment. Finally, price incentives, which have become common for new scheme developments, would not get reflected in the data.
Commenting on the results, Niall O’Grady, General Manager Marketing, permanent tsb bank said: "This result in March confirms the continuing softening in both house prices and transactions numbers across the spectrum as the market moves to more realistic levels of affordability. The data also clearly shows that sellers who are targeting first time buyers have adjusted their prices very significantly in an attempt to reignite demand.”
Dublin V Rest of Country:
Dublin house prices fell by 0.2% in March while there was a reduction of 0.6% for houses outside Dublin. In February the relative price changes were -1.1% and -1.3%.
In the first quarter prices for Dublin and Outside Dublin were down 1.8% and 2.8% respectively. The equivalent rates last year were +0.4% and -0.2%.
House prices were reduced by 9.1% and 8.8% in the twelve months to March 2008 in Dublin and Outside Dublin respectively. The equivalent rates to February were -8.9% and -8.8% respectively.
The average price paid for a house in Dublin and outside Dublin in March 2008 was €390,274 and €242,300 respectively. The equivalent prices in December 2007 were €397,507 and €249,359.
Commuter Counties: - Louth, Meath, Kildare & Wicklow
House prices in the commuter counties of Dublin fell by 0.5% in March 2008, while the reduction in February was 1.0%. In the first quarter this year prices fell by 2.3% compared to 1.8% last year. A year on year reduction to March 2008 in the Commuter counties of 7.1% compares with 7.4% in this category over the 12 months to February.
The price of a house in the commuter counties in March 2008 was €314,054, down from €321,403 in December 2007.
3 Bedroom Semi-detached Houses
3 bed semi-detached house prices increased slightly (up 0.2%) in March 2008, while in February the reduction was 0.5%. Year to date prices fell by 1.1% compared to 0.7% in same period last year.
House prices in this category were reduced by 4.4% year on year to March 2008 compared with 3.9% to February 2008. The price of a 3 bedroom semi in March 2008 was €296,066 - down from €299,412 recorded in December 2007.
First time buyers V. Second time buyers:
House prices for first-time and second-time buyers were reduced by 1.3% and 0.5% respectively in March 2008. In February the equivalent rates showed reductions of 1.0% and 0.4%. Year to date prices for first-time and second-time buyers were down 3.6% and 1.6% respectively, while growth rates this time last year were +0.3% and -0.6%.
House prices were reduced by 10.2% and 8.8% year on year to March 2008 for first-time and second-time buyers respectively. The equivalent rates to February were 8.9% and 8.8% respectively.
The average price paid by a first-time buyer and a second-time buyer in March 2008 was €251,281 and € 316,459 respectively. The equivalent prices in December 2007 were €260,786 and €321,498.
New V. Existing Houses
House prices for new and second-hand houses were reduced by 0.5% and 0.7% respectively in March 2008. In February the relative price reductions were 0.4% each. Year to date prices for new and existing houses were down 1.3% and 1.2% respectively. The equivalent rates last year were +0.5% and
-0.8%.
New and second hand house prices fell by 5.8% and 9.3% respectively year on year to March 2008. The equivalent rates of growth to February were 6.0% and 9.3% respectively.
The average price paid for a new house in March 2008 was € 286,614, while that paid for a second hand house was € 281,236. The equivalent levels in December 2007 were €290,296 and €284,608.
