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Irish average national house prices fell by 1.7% in Q2 2010; Fall in H1 2010 was 6.4%; Average price is at 2001 level
By Finfacts Team
Jul 29, 2010 - 10:01:14 AM
Irish average national house prices in Ireland fell by 1.7% in Q2 (Quarter 2) 2010
according to the Permanent TSB / ESRI House Price Index Quarterly Review
published today. This is the lowest quarterly reduction since the second Quarter
of 2008 [April – June inclusive] and compares to a reduction in Quarter 1 this
year of 4.8% and a reduction of 3.9% in Quarter 2 of last year [2009]. The fall
in average national house prices in the first six months (H1) of this year was
6.4%. The average price is back at the 2001 level.
This compares to a fall of 8.1% in the first six months of last year [2009].
The year on year decline (Quarter 2, 2009 to Quarter 2, 2010) was 17.0% and
compares to a reduction of 18.9% year on year to Quarter 1 2010. The average
price for a house nationally in Quarter 2, 2010 was €201,364, compared with
€242,593 in Quarter 2 2009 and €311,078 at their peak. The average national price for a second hand house in 2001, was €206,117. National prices have
fallen 35% since the price peak at the end of 2006. However, the index may not
capture the full extent of the housing collapse - - see below.
Dublin V Rest of Country: Dublin house prices fell by 3.5% in the 2nd
Quarter of 2010. This compares to a reduction in 1st Quarter 2010 of 10.3% and a
reduction of 7.5% in Quarter 4 2009. The reduction in the first six months of
2010 was 13.5%, and compares to -12.2% in the same period 2009. The year on year
decline in Dublin (Quarter 2 2009 to Quarter 2 2010) was 24.6% and compares to a
reduction of 24.5% year on year to Quarter 1 2010. The average price for a
Dublin house in Quarter 2 2010 was €242,000, compared with €250,872 in Quarter 1
2010.
House prices Outside Dublin fell by 0.8% in the 2nd Quarter of 2010. This
compares to a reduction in Quarter 1 2010 of 3.5% and a reduction of 6.2% in
Quarter 4 2009.
The reduction in the first six months of 2010 was 4.3%, and compares to -6.0% in
the same period 2009. The year on year decline Outside Dublin (Quarter 2 2009 to
Quarter 2 2010) was 14.0% and compares to a reduction of 16.2% year on year to
Quarter 1 2010. The average price for a house Outside Dublin in Quarter 2 2010
was €181,820, compared with €183,309 in Quarter 1 2010.
Commenting on the figures Niall O’ Grady, General Manager with permanent tsb
said “While prices continue to fall at different levels in Dublin versus the
rest of the country, this reduction in Quarter 2 is the lowest recorded
quarterly fall in almost two years. This may indicate that prices are starting
to find a more sustainable level after almost three and a half years of decline”
The Permanent TSB house price index is based on the agreed sale price and is
calculated using data from the firm's mortgage drawdowns.
There is no data on volume change from month to month - - a key drawback - -
and the data is based on Permanent TSB transactions, which may not be
representative of the whole market. For example the plunge in high priced houses
and the large number of poorly constructed apartments, may not be reflected in the index.
In the second quarter for example, the sample could have been small and consequently have distorted the result.
