National price of houses hits 2002 levels

AVERAGE national house prices are at 2002 levels, falling by a further 1.3% in the third quarter of 2010.

The latest permanent tsb/ESRI house price index shows that house prices have fallen 36% since the peak at the end of 2006.

Last quarter’s fall of 1.3% is the lowest quarterly reduction since the second quarter of 2008 (April-June inclusive) and compares to a reduction in the second quarter of this year of 1.7%.

The fall in average national house prices in the first nine months of this year was 7.6%. This compares with a fall of 11.7% in the first nine months of last year.

The year-on-year decline (quarter three 2009 to quarter three 2010) was 14.8% and compares to a reduction of 17% year-on-year to the second quarter of 2010.

The average price for a house nationally in the third quarter of this year has fallen below €200,000 to €198,689, compared with €233,137 in the third quarter of last year and €311,078 at their peak.

Commenting on the figures, general manager with Permanent tsb Niall O’Grady said it might be too early to say house prices had reached the bottom.

“This is the second successive quarter indicating that the pace of decline in house prices is easing. However, as the market remains very quiet, it may be premature to conclude that we have reached the bottom of the cycle just yet,” he said.

Dublin house prices fell by 1.2% in the third quarter of 2010. This compares with a reduction in the second quarter of 3.5% and a reduction of 10.3% in the first quarter of this year.

The reduction in the first nine months of 2010 was 14.6%, and compares with 17.2% in the same period 2009. The year-on-year decline in Dublin (quarter three 2009 to quarter three 2010) was 21% and compares with a reduction of 24.6% year-on-year to the second quarter of this year. The average price for a Dublin house in the third quarter of 2010 was €238,986, compared with €242,000 in the second quarter

House prices outside Dublin fell by 1.2% in the third quarter of this year. This compares to a reduction in the second quarter of 0.8% and a reduction of 3.5% in the first quarter of 2010.

The reduction in the first nine months of 2010 was 5.4%, and compares with 10% in the same period 2009. The year on year decline Outside Dublin (quarter three 2009 to quarter three 2010) was 11.2% and compares with a reduction of 14% year-on-year to the second quarter of 2010.