House Price Index: 0.2% Fall in July

Figures show national house price reduction of 0.2% in July
First seven months of 2008 reduction stands at 5.2%. 

Average national house prices fell by 0.2% in July according to the latest edition of the permanent tsb / ESRI House Price Index. This follows reductions of [0.6%] in June, [1.2%] in May, [1.1%] in April and [0.7%] in March.

In the first seven months of 2008 average national prices fell by 5.2%, compared with a drop of 5.0% to June 2008 and a drop of 3.0% to July 2007.

Measuring the rate of growth in the 12 months (year on year) to July, average national prices were down by 9.4%.  This compares to a decline of 9.7% recorded in the 12 months to June and a fall of 0.7% to July 2007.

The average price paid for a house nationally in July 2008 was euro 272,946.  This compares to euro 287,887 in December 2007 and euro 302,605 in July last year.

Commenting on the results, Niall O’Grady, General Manager Business Strategy, permanent tsb said:  “Transaction volumes were light during the summer and it’s likely that this was a factor in the very low decline in average prices during July.”

Dublin V Rest of Country

Dublin house prices fell by 0.6% in July while houses outside Dublin reduced by 0.4%.  In June the relative price changes were -0.2% and -0.8%.

In the first seven months of 2008 prices for Dublin and Outside Dublin were down 5.1% and 5.5% respectively. The equivalent changes last year were -3.8% and -3.4%.

House prices were reduced by 8.2% and 8.5% in the twelve months to July 2008 in Dublin and Outside Dublin respectively. The equivalent changes in the twelve months to June were -9.4% and -8.3% respectively.

The average price paid for a house in Dublin and outside Dublin in July 2008 was EUR 377,316 and EUR 235,622 respectively. The equivalent prices in December 2007 were EUR 397,507 and EUR 249,359.

Commuter Counties: - Louth, Meath, Kildare & Wicklow

House prices in the commuter counties of Dublin fell by 1.2% in July 2008, while the reduction in June was 1.4%. In the first seven months of this year prices fell by 7.0% compared to 4.2% last year. A year on year reduction to July 2008 in the Commuter counties of 9.4% compares with 8.5% in this category over the 12 months to June.

The price of a house in the commuter counties in July 2008 was euro 298,866, down from euro 321,403 in December 2007.

3 Bedroom Semi-detached Houses

3 bed semi-detached house prices reduced by 1.4% in July 2008, compared with a reduction of 0.5% in June.  Year to date prices fell by 4.2% compared to 4.3% in same period last year.

House prices in this category were reduced by 3.9% year on year to July 2008 compared with a reduction of 2.0% to June 2008. The price of a 3 bedroom semi in July 2008 was euro 286,918 - down from euro 299,412 recorded in Dec. ‘07.

 First time buyers V. Second time buyers:

House prices for first-time and second-time buyers were reduced by 0.4% and 0.2% respectively in July 2008. In June the equivalent rates showed reductions of 0.2% and 0.6%. Year to date prices for first-time and second-time buyers were down 5.8% and 4.9% respectively, while growth rates for the same period last year were -3.6% and -3.2%.

House prices were reduced by 8.7% and 9.5% year on year to July 2008 for first-time and second-time buyers respectively. The equivalent rates to June were reductions of 8.7% and 9.9% respectively.

The average price paid by a first-time buyer and a second-time buyer in July 2008 was EUR 245,539 and EUR 305,625 respectively. The equivalent prices in December 2007 were EUR 260,786 and EUR 321,498.

New V. Existing Houses

House prices for new and second-hand houses both reduced by 0.2% in July 2008. In June the relative price reductions were 1.3% and 0.4% respectively. Year to date prices for new and existing houses were down 6.3% and 4.0% respectively. The equivalent changes last year were -1.6% and -2.9%.

New and second hand house prices fell by 8.7% and 10.0% respectively year on year to July 2008. The equivalent changes to June were -8.8% and -10.1% respectively.

The average price paid for a new house in July 2008 was EUR 272,099, while that paid for a second hand house was EUR 273,142. The equivalent levels in December 2007 were EUR 290,296 and EUR 284,608.