Rate of house price decline increasing

Average national house prices reduced by 1.9% in April according to the latest permanent tsb / ESRI House Price Index.

This compares to reductions in March (-1%), February (-0.8%) and January 2009 (-1.4%).

Measuring the rate of growth since April 2008, national prices were down by 10.7%. This compares to a decline of 10% recorded in the 12 months to March 2009.

In the first four months of 2009, national house prices have fallen by 4.9% which compares to a reduction of 3.3% in the same period in 2008.

The average price paid for a house nationally in April 2009 was €248,640, compared with €261,573 in December and a peak of €311,078 in February 2007.

Commenting on the results, Niall O’Grady, general manager business strategy, permanent tsb said: “This is the fastest rate of decline in national prices that we have seen to date since the index started in 1996.

“The particularly dramatic reduction in prices for first time buyers reflects their reluctance to buy in a market that is still declining and where unsold properties are being reduced further.”

Dublin house prices fell by 1.1% in April while there was a reduction of 1.7% for houses outside Dublin. In March the relative price changes were -1.2% and -1.1%.

House prices were reduced by 14.3% and 10.8% in the 12 months to April 2009 in Dublin and outside Dublin respectively. The equivalent rates to March were reductions of 14.2% and 9.9% respectively.

In the first four months of 2009, prices in Dublin and outside Dublin have fallen by 5.7% and 4.3% respectively.

The average price paid for a house in Dublin and outside Dublin in April was €331,206 and €214,445 respectively. The equivalent prices in December were €351,096 and €223,984.