The average price paid for an Irish house nationally in April 2009 was €248,640, compared with €261,573 in December and a peak of €311,078 in February 2007. The average price paid in Scotland in Q1 2009 was €142,820; €186,100 in Northern Ireland and €277,00 in Greater London, according to Lloyds Banking Group data. In the US, the median price for a single-family house fell 14% to $169,000 in the first quarter from a year earlier, the National Association of Realtors reported. The lowest median price among the metro areas was $30,300 in Saginaw, Mich., and the highest was $570,000 in Honolulu. The median price is the midpoint, which means half of the homes sold for more and half for less.

Average Irish national house prices fell by 1.9% in April according to the latest edition of the permanent tsb / ESRI House Price Index.  This compares to reductions in March (-1.0%), February (-0.8%) and January 2009 (-1.4%).  Measuring the rate of growth in the 12 months (year on year) to April, national prices were down by 10.7%.  This compares to a decline of 10.0% recorded in the 12 months to March 2009.  In the first four months of 2009 national house prices have fallen by 4.9% which compares to a reduction of 3.3% in the same period in 2008.

The average price paid for a house nationally in April 2009 was €248,640, compared with €261,573 in December and a peak of €311,078 in February 2007.

Commenting on the results, Niall O’Grady, General Manager Business Strategy, permanent tsb said “This is the fastest rate of decline in national prices that we have seen to date since the index started in 1996. The particularly dramatic reduction in prices for First Time Buyers reflects their reluctance to buy in a market that is still declining and where unsold properties are being reduced further.”

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 drawn down.

Methodology

Paper by David Duffy of the ESRI, published in May 2009

It has been argued that the index likely understates house price falls.

The 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.

The current number of units used to calculate the index, is likely a fraction of the number at the peak of the bubble in 2006.

Dublin V Rest of Country

Dublin house prices fell by 1.1% in April while there was a reduction of 1.7% for houses outside Dublin.  In March the relative price changes were -1.2% and -1.1%.

House prices were reduced by 14.3% and 10.8% in the twelve months to April 2009 in Dublin and Outside Dublin respectively.  The equivalent rates to March were reductions of 14.2% and 9.9% respectively.

In the first four months of 2009 prices in Dublin and Outside Dublin have fallen by 5.7% and 4.3% respectively.

The average price paid for a house in Dublin and outside Dublin in April was €331,206 and €214,445 respectively. The equivalent prices in December were €351,096 and €223,984.

Commuter Counties: - Louth, Meath, Kildare & Wicklow

House prices in the commuter counties of Dublin fell by 1.4% in April 2009, compared to a decline of 0.6% in March.  A year on year reduction to April 2009 in the Commuter counties at minus 17.8% compares with a decline 17.9% in the 12 months to March. In the first four months of 2009 prices fell by 4.9%.

The price of a house in the commuter counties in April 2009 was €254,281, down from €267,265 in December.

First time buyers V. Second time buyers

House prices for first-time and second-time buyers fell by 4.1% and 0.8% respectively in April 2009.  In March the equivalent rates showed reductions of 0.3% and 1.1%.

House prices were reduced by 17.4% and 9.5% year on year to April 2009 for first-time [FTB] and second-time buyers [STB] respectively. The equivalent rates to March were a fall of 14.3% and 9.8% respectively.

In the first four months of 2009 prices for FTBs & STBs have fallen by 7.9% and 4.4% respectively.

The average price paid by a first-time buyer and a second-time buyer in April 2009 was €206,530 and €283,200 respectively. The equivalent prices in December were €224,153 and €296,302.

New V. Existing Houses

House prices for new and existing houses were reduced by 2.6% and 1.5% respectively in April 2009.  In March the relative price reductions were 1.9% and 0.4%.

New and second hand house prices fell by 11.1% and 11.7% respectively year on year to April 2009.  The equivalent rates to March were minus 10.5% and minus 11.0% respectively.

In the first four months of 2009 new and existing house prices were reduced by 6.3% and 4.1% respectively.

The average price paid for a new Irish house in April 2009 was €249,785, while that paid for a second hand house was €246,390. The equivalent levels in December were €266,466 and €256,956.

[3 Bed Semi price index is currently not available due to the low sample size.]