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| The average price paid for a house nationally in January 2009 was €258,006, compared with €261,573 in December 2008 and a peak of €311,078 in January 2007.
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Irish house price falls accelerated in January. Average national house prices reduced by 1.4% in January of this year – this compares to reductions in October (-0.8%), November (-0.5%) and December (-0.9%) last year according to the latest edition of the permanent tsb / ESRI House Price Index.
Measuring the rate of growth in the 12 months (year on year) to January, national prices were down by 9.8%. This compares to a decline of 9.1% recorded in the 12 months to December last year.
The average price paid for a house nationally in January 2009 was €258,006, compared with €261,573 in December 2008 and a peak of €311,078 in January 2007.
Commenting on the results, Niall O’Grady, General Manager Business Strategy, permanent tsb said “The pace of reductions is clearly accelerating due to deepening price discounting in the market in an attempt to clear existing stock”
The permanent tsb house price index is a 3 month moving average. The index is based on the agreed sale price and is calculated using data from mortgage drawdowns. Therefore a lag may exist between the time the sale price is agreed and when the mortgage is drawndown.
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 in November 2007, 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.
Dublin V Rest of Country
Dublin house prices fell by 1.4% in January while there was a reduction of 0.6% for houses bought outside Dublin. In December 2008 the relative price changes were -2.1% and -0.7%.
House prices were reduced by 12.4% and 9.9% in the twelve months to January 2009 in Dublin and Outside Dublin respectively. The equivalent rates to December 2008 were reductions of 11.7% and 10.2% respectively.
The average price paid for a house in Dublin and outside Dublin in January 2009 was €346,274 and €222,649 respectively. The equivalent prices in December 2008 were €351,096 and €223,984.
Commuter Counties: - Louth, Meath, Kildare & Wicklow
House prices in the commuter counties of Dublin fell by 0.6% in January 2009, compared to a decline of 4.5% in December 2008. A year on year reduction to January 2009 in the Commuter counties at minus 16.7% compares with a decline 16.8% in the 12 months to December 2008.
The price of a house in the commuter counties in January 2009 was €265,550, down from €267,265 in December 2008.
First time buyers V. Second time buyers
House prices for first-time and second-time buyers fell by 0.8% and 1.9% respectively in January 2009. In December 2008 the equivalent rates showed reductions of 2.6% and 0.4%.
House prices were reduced by 13.5% and 8.9% year on year to January 2009 for first-time and second-time buyers respectively. The equivalent rates to December 2008 were a fall of 14.0% and 7.8% respectively.
The average price paid by a first-time buyer and a second-time buyer in January 2009 was €222,371 and €290,759 respectively. The equivalent prices in December 2008 were €224,153 and €296,302.
New V. Existing Houses
House prices for new and existing houses were reduced by 1.3% in January 2009. In December 2008 the relative price reductions were 0.7% and 1.4% respectively.
New and second hand house prices fell by 9.0% and 10.8% respectively year on year to January 2009. The equivalent rates to December 2008 were minus 8.2% and minus 9.7% respectively.
The average price paid for a new house in January 2009 was €263,000, while that paid for a second hand house was €253,584. The equivalent levels in December 2008 were €266,466 and €256,956.
Please note 3 Bed Semi price index is currently not available due to the low sample size.
