Property market - House price instability is unwelcome

THE fall in house prices, the first in five years, is a two-edged sword — good for buyers but bad for vendors.

While a fall of 0.6% last month may not seem much, it means the average price paid for a house in Ireland last month was €2,007 less than in February.

The figures come from the Permanent TSB/ESRI house price index, the most authoritative source of house price trends.

Except for houses bought by first-time buyers, the fall is reflected right across the market outside of Dublin. This pattern follows an earlier price slowdown, triggering stagnation in the property business.

Doubtless, the flurry of auction politics and political manoeuvring on stamp duty reform has confused buyers and vendors alike.

As Taoiseach Bertie Ahern put it, the sooner the election is out of the way the better for the housing market.