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| The average price paid for a new house in April 2008 was € 280,981, while that paid for a second hand house was € 278,987. The equivalent levels in December 2007 were €290,296 and €284,608.
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Irish National House Prices: Prices plunged in April as developers cut prices on new houses. Tightening credit conditions and rising mortgage rates have deterred buyers. The drop in the price of new homes was almost twice the national rate. Data from the Central Bank show that the growth in mortgage lending last month fell to its slowest rate since 1992.
Average national house prices fell by a further 1.1% in April according to the latest edition of the permanent tsb / ESRI House Price Index. This follows reductions [0.7%] in March, [0.8%] in February and [0.7%] in January. In the first four months of 2008 average national prices fell by 3.3%.
Measuring the rate of growth in the 12 months (year on year) to April, average national prices were down by 9.2%. This compares to a decline of 8.9% recorded in the 12 months to March.
The average price paid for a house nationally in April 2008 was € 278,521. This compares to € 287,887 in December 2007.
Commenting on the results, Niall O’Grady, General Manager Marketing, permanent tsb bank said: "While the trend of falling house prices continued in April, there is a clear sign of a more pronounced reduction in the price of new houses as sellers move to drive activity in this sluggish sector. Meanwhile the three bedroom sector remains the most resilient.”
Industry body, the IAVI, said in January that there were 40,000 empty apartments in Dublin.
Investors who bought houses in recent years on five-year interest only deals, to make a quick gain, now face the prospect of capital payments, furnishing for rent or dumping property at a loss.
The CSO reported from the Census 2006, in August 2007, that there were 266,000 vacant dwellings in 2006 representing 15% of the total housing stock. Of these, 175,000 were houses, 42,000 were flats and 50,000 were classified as holiday homes. County Leitrim had the highest percentage of vacant dwellings (29.3%) while 11.7 per cent of dwellings in Dublin City were vacant at the time of the census.
The Census 2002 had estimated that 140,000 homes were empty.
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.
Dublin V Rest of Country:
Dublin house prices fell by 0.9% in April while there was a reduction of 0.8% for houses outside Dublin. In March the relative price changes were -0.2% and -0.6%.
In the first four months prices for Dublin and Outside Dublin were down 2.7% and 3.6% respectively. The equivalent rates last year were +0.6% and -1.5%.
House prices were reduced by 10.0% and 8.4% in the twelve months to April 2008 in Dublin and Outside Dublin respectively. The equivalent rates to March were -9.1% and -8.8% respectively.
The average price paid for a house in Dublin and outside Dublin in April 2008 was €386,658 and €240,392 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 1.5% in April 2008, while the reduction in March was 0.5%. In the first four months this year prices fell by 3.7% compared to 3.6% last year. A year on year reduction to April 2008 in the Commuter counties of 6.8% compares with 7.1% in this category over the 12 months to March.
The price of a house in the commuter counties in April 2008 was €309,400, down from €321,403 in December 2007.
3 Bedroom Semi-detached Houses
3 bed semi-detached house prices rose slightly (+ 0.1%) in April 2008, as they did in March (+0.2%). Year to date prices fell by 1.0% compared to 1.6% in same period last year.
House prices in this category were reduced by 3.5% year on year to April 2008 compared with 4.4% to March 2008. The price of a 3 bedroom semi in April 2008 was €296,289 - 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 0.6% and 1.1% respectively in April 2008. In March the equivalent rates showed reductions of 1.3% and 0.5%. Year to date prices for first-time and second-time buyers were down 4.2% and 2.7% respectively, while growth rates this time last year were -0.5% and -1.6%.
House prices were reduced by 10.0% and 8.9% year on year to April 2008 for first-time and second-time buyers respectively. The equivalent rates to March were 10.2% and 8.8% respectively.
The average price paid by a first-time buyer and a second-time buyer in April 2008 was €249,895 and €312,931 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 2.0% and 0.8% respectively in April 2008. In March the relative price reductions were 0.5% and 0.7%. Year to date prices for new and existing houses were down 3.2% and 2.0% respectively. The equivalent rates last year were +0.5% and -1.6%.
New and second hand house prices fell by 7.6% and 9.3% respectively year on year to April 2008. The equivalent rates to March were 5.8% and 9.3% respectively.
The average price paid for a new house in April 2008 was € 280,981, while that paid for a second hand house was € 278,987. The equivalent levels in December 2007 were €290,296 and €284,608.
