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| The average price for an Irish house nationally in June 2009 was €241,504, compared with €261,573 in December and a peak of €311,078 in February 2007.
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Average Irish national house fell by 1.5% in June according to the latest edition of the permanent tsb / ESRI House Price Index. This compares to reductions in May (-1.3%), April (-1.9%) and March 2009 (-1.0%). In the first six months of 2009 national house prices have fallen by 7.7% which compares to a reduction of 5.0% in the same period in 2008. Measured over the 12 months (year on year) to June, national prices were down by 11.7%. This compares to a decline of 10.9% recorded in the 12 months to May 2009.
The average price for a house nationally in June 2009 was €241,504, compared with €261,573 in December and a peak of €311,078 in February 2007.
Commenting on the results, a spokesman for permanent tsb said; “The index today confirms the pattern of recent months; poor demand and significant oversupply have combined to cancel out the benefits of lower interest rates to mean that prices continue to weaken. This pattern is likely to persist for some time.”
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 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.
Why doesn't the State's statistics office produce the index? Just as one may ask, why is there no official data on development land sales?
Dublin V Rest of Country
Dublin house prices fell by 1.3% in June while there was a reduction of 0.7% for houses outside Dublin. In May the relative price changes were -2.2% and -0.4%.
House prices were reduced by 15.8% and 10.4% in the twelve months to June 2009 in Dublin and Outside Dublin respectively. The equivalent rates to May were reductions of 14.8% and 10.5% respectively.
Through the first six months of 2009 prices in Dublin and Outside Dublin fell by 8.9% and 5.4% respectively.
The average price for a house in Dublin and outside Dublin in June was €319,754 and €211,965 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 2.8% in June 2009, compared to a decline of 0.6% in May. A year on year reduction to June 2009 in the Commuter counties at minus 18.8% compares with a decline 17.6% in the 12 months to May. In the first six months of 2009 prices fell by 8.1%.
The price of a house in the commuter counties in June 2009 was €245,707, down from €267,265 in December.
First time buyers V. Second time buyers
House prices for first-time and second-time buyers fell by 1.7% and 1.0% respectively in June 2009. In May the equivalent rates showed reductions of 1.4% and 0.5%.
House prices were reduced by 18.8% and 9.0% year on year to June 2009 for first-time [FTB] and second-time buyers [STB] respectively. The equivalent rates to May were a fall of 17.6% and 8.6% respectively.
In the first six months of 2009 prices for FTBs & STBs have fallen by 10.7% and 5.9% respectively.
The average price paid by a first-time buyer and a second-time buyer in June 2009 was €200,193 and €278,917 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 0.3% and 1.9% respectively in June 2009. In May the relative price reductions were 2.1% and 0.1%.
New and second hand house prices fell by 10.5% and 11.8% respectively year on year to June 2009. The equivalent rates to May were minus 11.5% and minus 10.4% respectively.
In the first six months of 2009 new and existing house prices were reduced by 8.5% and 6.0% respectively.
The average price paid for a new house in June 2009 was €243,936, while that for a second hand house was €241,444. The equivalent levels in December were €266,466 and €256,956.
Note 3 Bed Semi price index is currently not available due to the low sample size.
