Irish
Average Irish house prices down 3.3% in year to August
By Finfacts Team
Oct 4, 2007, 10:00

Printer-friendly page from Finfacts Ireland Business News - Click for the News Main Page - A service of the Finfacts Ireland Business and Finance Portal

The average price paid for a new house in August 2007 was €296,796, while that paid for a second hand house was €302,143. The equivalent levels in December 2006 were €302,645 and €312,709.

Average national Irish house prices declined by 0.3% in August according to the latest edition of the permanent tsb / ESRI House Price Index.   This compares to a decline of 0.4% in July. Measured over the past twelve months [August 2006 to August 2007 inclusive], the index shows that average prices declined by 1.9%.  Measured since the start of this year, that decline has been 3.3%.

The average price paid for a house in Ireland in August now stands at €300,375, compared with €306,173 in August last year.  

The house price index measures the movement of house prices on a month by month basis.  It is prepared by permanent tsb bank and the ESRI and is considered the most accurate measure of house price movements in the country. 

The index does not measure activity/volume. The Exchequer figures for the first nine months of the year, which were published on Tuesday, showed big drops in property-related taxes, signalling a fall in activity.

Commenting on the results, Niall O’Grady, Head of Marketing, permanent tsb bank said; “While we have seen attention grabbing stories about declines in the asking prices for some houses, the index confirms that the actual rate of change in house prices across the country remains modest.  Since the start of this year, prices have declined by 3.3% on average.”

Dublin V Rest of Country:
Dublin house prices and those Outside Dublin declined by 0.1% in August. In July 2007 the relative price changes were -1.9% and -0.2%.  Over the first eight months of this year, prices were down by 3.9% and 3.5% respectively.

In the 12 months to the end of August 2007, house prices in Dublin were reduced by 0.6%.  Outside Dublin they reduced by 2.9% over the same period.  The equivalent rates to July 2007 were (plus) 0.5% and (minus) 1.8% respectively.

The average price paid for a house in Dublin and outside Dublin in August 2007 was €410,466 and €256,991 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 declined by 1.3% in August 2007, compared to a reduction of 0.3% in July 2007. During the first eight months of this year prices reduced by 5.4%. Year on year growth to August 2007 in the Commuter counties was (minus) 3.7%, compared with the (minus) 1.2% recorded in the 12 months to July 2007.

The price of a house in the commuter counties in August 2007 was €325,568, down from €344,186 in December 2006.

3 Bedroom Semi-detached Houses
3 bed semi-detached house prices grew by 0.9% in August 2007, while in July this year prices grew by 0.5%. During the first eight months of this year prices were down by 3.4%.

House prices in this category declined by 2.3% year on year to August 2007 compared with a reduction of 1.4% in the year to July 2007. The price of a 3 bedroom semi in August 2007 was €301,197 - down from €311,906 recorded in December 2006.

First time buyers V. Second time buyers:
House prices in August for second-time buyers reduced by 0.2%, while prices were unchanged for first-time buyers. In July 2007 the equivalent figures were minus 0.7% and minus 0.4%. During the first eight months of this year prices were down by 3.5% and 3.6% respectively.

House prices declined by 2.4% and 2.0% year on year to August 2007 for first-time and second-time buyers respectively. The equivalent growth rates to July 2007 were minus 1.2% and minus 1.0% respectively.

The average price paid by a first-time buyer and a second-time buyer in August 2007 was € 268,904 and € 337,119 respectively. The equivalent prices in December 2006 were €279,003 and €349,213.

New V. Existing Houses
House prices for new and existing houses were down by 0.4% in August. In July this year the relative price changes were minus 0.4% and minus 0.3% respectively for new and second hand houses. During the first eight months of this year prices reduced by 1.9% and 3.4% respectively.

Prices for new houses declined by 1.2%, while prices for second hand houses declined by 1.8% respectively year on year to August 2007. The equivalent rates of growth to July 2007 were plus 0.1% and minus 0.4% respectively.

The average price paid for a new house in August 2007 was €296,796, while that paid for a second hand house was €302,143. The equivalent levels in December 2006 were €302,645 and €312,709.