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| National Irish House Prices - - year-on-year and month-on-month growth from Jan 1996
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Irish average national house prices are down 11.1% in first nine months of 2009 and prices are back to Christmas 2003 levels, according to data published today.
Prices fell by 1.1% in September according to the latest edition of the Permanent tsb / ESRI House Price Index. This compares to reductions in August (-1.5%), July (-1.1%) and June 2009 (-1.5%).
In the first nine months of 2009 national house prices have fallen by 11.1% which compares to a reduction of 7.0% in the same period in 2008. Measured over the 12 months (year on year) to September, national prices were down by 13.1%.
This compares to a decline of 13.0% recorded in the 12 months to August 2009. The average price for a house nationally in September 2009 was €232,584, compared with €261,573 in December and a peak of € 311,078 in February 2007. National prices have fallen 25.2% since this price peak.
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.
There is no data on volume change from month to month - - a key drawback.
Methodology
Paper by David Duffy of the ESRI, published in May 2009
It has been argued that the index likely understates house price falls.
Commenting on the results, Niall O’Grady, General Manager Business Strategy, Permanent tsb said; “while the rate of decline is relatively stable over the past few months, there is significant differences in different parts of the country with Dublin prices falling much faster due to the significant stock of unused property.”
Dublin V Rest of Country
Dublin house prices fell by 2.1% in September while there was a reduction of 1.3% for houses outside Dublin. In August the relative price changes were -1.9% and -2.4%. House prices were reduced by 19.1% and 11.8% in the twelve months to September 2009 in Dublin and Outside Dublin respectively. The equivalent rates to August were reductions of 18.0% and 12.1% respectively.
Through the first nine months of 2009 prices in Dublin and Outside Dublin fell by 14.4% and 9.9% respectively. The average price for a house in Dublin and outside Dublin in September was €300,466 and €201,853 respectively. The equivalent prices in December were €351,096 and €223,984.
