Irish house prices have fallen on average by 2.1% in year to May; Prices for First Time Buyers fell by 1.8% in May

Irish
Irish house prices have fallen on average by 2.1% in year to May; Prices for First Time Buyers fell by 1.8% in May
By Finfacts Team
Jun 29, 2007, 15:22

Latest figures show a decrease [- 0.8%] in average national house prices in May, continuing the trend from April and March.
In the first five months of 2007 prices nationally decreased by 2.1%, compared to first five months growth of 6.7% in 2006.
First Time Buyers see reduction in prices of 1.8% in May

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The average price paid for a house in Dublin and outside Dublin in May 2007 was € 424,631 and € 260,234 respectively. The equivalent prices in December 2006 were € 427,343 and €266,339.

The average price paid for a house in Ireland in May was €2,453 less than the average price paid in April according to the latest edition of the permanent tsb / ESRI House Price Index. This equates to a decline in national prices of 0.8% in May. This follows the reduction in national house prices of 0.8% in April and 0.6% in March.

The results for May mean that over the first five months of the year (January to May inclusive) prices nationally decreased by 2.1%. This compares to growth of 6.7% in the same period last year.

Measured over the past 12 months (up to and including May), the average price paid for a house in Ireland was just 2.6% higher in May 2007 than the price paid in May 2006. This was a lower increase than the 5.1% difference in national prices which occurred between April 2006 and April 2007. This time last year prices had increased by 14.5% over the previous 12 months (May 05 to May 06).

The average price paid for a house nationally in May 2007 was €304,166, compared with €310,632 in December 2006.

Commenting on the results, Niall O’Grady, Head of Marketing, permanent tsb bank said: "The period under review in this index coincided with the run in to the recent General Election when uncertainty about Stamp Duty was at its height. Together with the intense competition in the First Time Buyer [FTB] sector in particular, this may account for the decline in prices amongst FTBs of 1.8% in this index.”

Dublin V Rest of Country:
Dublin house prices were reduced by 1.2% in May while there was a reduction in prices of 0.8% for houses bought outside Dublin. In April 2007 the relative price changes were 0.1% and -1.3%. First five months growth was minus 0.6% and minus 2.3% respectively.

House prices grew by 7.6% and 1.5% in the twelve months to May 2007 in Dublin and Outside Dublin respectively. The equivalent rates to April 2007 were 10.6% and 4.1% respectively.

The average price paid for a house in Dublin and outside Dublin in May 2007 was € 424,631 and € 260,234 respectively. The equivalent prices in December 2006 were € 427,343 and €266,339.

Commuter Counties: - Louth, Meath, Kildare & Wicklow
House prices in the commuter counties of Dublin grew slightly by 0.3% in May 2007, compared to a fall of 1.8% in April 2007. First five months movement was minus 3.3%. Year on year growth to May 2007 in the Commuter counties was 3.0%, down from 4.8% in the 12 months to April 2007.

The price of a house in the commuter counties in May 2007 was €332,917, down from €344,186 in December 2006.

3 Bedroom Semi-detached Houses
3 bed semi-detached house prices were reduced by 1.9% in May 2007, while in April this year prices fell by 0.9%. First five months movement was minus 3.4%.

House prices in this category grew by 2.3% year on year to May 2007 compared with 5.6% to April 2007. The price of a 3 bedroom semi in May 2007 was €301,197 - down from €311,906 recorded in December 2006.

First time buyers V. Second time buyers:
House prices in May for first-time and second-time buyers were reduced by 1.8% and 0.5% respectively. In April 2007 the equivalent figures were -0.8% and -0.9%. First five months movement was -2.3% and -2.1% respectively.

House prices grew by 3.3% and 2.6% year on year to May 2007 for first-time and second-time buyers respectively. The equivalent rates to April 2007 were 6.5% and 5.0% respectively.

The average price paid by a first-time buyer and a second-time buyer in May 2007 was €272,667 and €341,906 respectively. The equivalent prices in December 2006 were €279,003 and €349,213.

New V. Existing Houses
House prices for new houses were down by 1.0% in May while the price for existing houses decreased by 0.8%. In April this year the relative price changes were 0.0% and minus 0.8% respectively for new and second hand houses. First five months growth was -0.5% and -2.4% respectively.

New and second hand house prices grew by 3.3% and 2.4% respectively year on year to May 2007. The equivalent rates of growth to April 2007 were 5.5% and 4.7% respectively.

The average price paid for a new house in May 2007 was €301,128, while that paid for a second hand house was € 305,290. The equivalent levels in December 2006 were € 302,645 and € 312,709.