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Last Updated:
Apr 24, 2009 - 5:31:05 PM |
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| The average price paid for a new house in October 2008 was €268,633, while that paid for a second hand house was €263,700. The equivalent levels in December 2007 were €290,296 and €284,608.
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Average Irish national house prices fell by 0.8% in October according to the latest edition of thepermanent tsb / ESRI House Price Index. This follows reductions of 1.1% in September and 0.9% in August. In the first ten months of 2008 average national prices fell by 7.8%, compared with a drop of 7.0% in the year up to September 2008. Measuring the rate of growth in the 12 months (year on year) to October, average national prices were down by 10.2%. This compares to a decline of 4.7% recorded in the 12 months to October 2007.
The average price paid for a house nationally in October 2008 was €265,364. This compares to €287,887 in December last.
Commenting on the results, Niall O’Grady, General Manager Business Strategy, permanent tsb said: “The pace of price reductions remains steady nationally however the reductions in Dublin have started to accelerate. In addition the recent rate reductions from the European Central Bank provide a very welcome boost for existing customers but will not offset the loss of confidence in the market in the near term”
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, said last November, that three reasons can be cited for a discrepancy between its expectations of house price falls and the permanent tsb / ESRI House Price Index. Firstly, 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.
In the United States, prices in a number of major metropolitan areas, have fallen about 3 times the average Irish level.
Finfacts Report: S&P/Case-Shiller Home Price Indices in September shows continued broad declines in prices; Phoenix annual fall at 31.9%; Las Vegas down 31.3%; San Francisco at -29.5%
Dublin V Rest of Country
Dublin house prices fell by 2.6% in October while houses outside Dublin reduced by 1.4%. In September the relative price changes were -0.8% and -1.6%.
Year to date prices for Dublin and Outside Dublin were down 9.0% and 9.5% respectively.
House prices were reduced by 10.4% and 11.1% in the twelve months to October 2008 in Dublin and Outside Dublin respectively. The equivalent changes in the twelve months to September were -8.4% and -11.0% respectively.
The average price paid for a house in Dublin and outside Dublin in October 2008 was €361,644 and €225,701 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 around Dublin fell by 1.9% in October 2008. The reduction in September was 1.3%. In the first ten months of this year prices fell by 10.7%.
A year on year reduction to October 2008 in the Commuter counties of 11.9% compares with one of 10.2% in this category over the 12 months to September.
The price of a house in the commuter counties in October 2008 was €286,862, down from €321,403 in December 2007.
3 Bedroom Semi-detached Houses
Prices for 3 bed semi-detached houses reduced by 0.2% in October 2008, compared with a reduction of 1.2% in September. Year to date prices fell by 5.7%.
House prices in this category were reduced by 6.6% year on year to October 2008. The price of a 3 bedroom semi in October 2008 was €282,456 - down from €299,412 recorded in Dec. 2007.
First time buyers V. Second time buyers
House prices for first-time and second-time buyers were reduced by 2.1% and 0.4% respectively in October 2008. In September the equivalent rates showed reductions of 1.2% and 1.3%. Year to date prices for first-time and second-time buyers were down 10.0% and 7.4% respectively.
House prices were reduced by 10.4% and 10.2% year on year to October 2008 for first-time and second-time buyers respectively. The equivalent rates to September were reductions of 9.4% and 11.0% respectively.
The average price paid by a first-time buyer and a second-time buyer in October 2008 was €234,648 and €297,814 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 reduced by 0.5% and 1.0% respectively in October 2008. In September the relative price reductions were 0.4% and 1.5%. Year to date prices for new and existing houses were down 7.5% and 7.3% respectively.
New and second hand house prices fell by 8.3% and 8.6% respectively year on year to October 2008. The equivalent changes to September were -9.1% and -9.8% respectively.
The average price paid for a new house in October 2008 was €268,633, while that paid for a second hand house was €263,700. The equivalent levels in December 2007 were €290,296 and €284,608.
