The rate of house price decline during July has been described as an aberration by permanent tsb’s Niall O’Grady. This followed the publication of the latest edition of the permanent tsb/ESRI House Price Index (HPI).
“The very low rate of decline in July was clearly an aberration from the trend over the past few months,” he said. “August re-establishes that trend and it’s likely to continue through the remainder of this year.”
Average national house prices fell by 0.9 per cent in August according to the HPI, following reductions of 0.2 per cent in July, 0.6 per cent in June, 1.2 per cent in May and 1.1 per cent in April.
In other words, a house valued at €300,000 in April would now command a price of €288,000.
In the first eight months of 2008 average national prices fell by six per cent, compared with a drop of 5.2 per cent to July 2008 and a drop of 3.3 per cent to August 2007.
The average price paid for a house nationally in August 2008 was €270,493, which compares to €287,887 in December 2007 and €300,375 in August ‘07.
Dublin house prices fell by 0.8 per cent during August while houses outside Dublin reduced by 1.3 per cent.
In the first eight months of 2008 prices for Dublin and Outside Dublin were down 5.8 per cent and 6.7 per cent respectively.
House prices were reduced by 8.8 per cent and 9.5 per cent in the 12 months to August 2008 in Dublin and Outside Dublin respectively.
The average price paid for a house in Dublin and outside Dublin in August 2008 was €374,302 and €232,570 respectively. The equivalent prices in December ‘07 were €397,507 and €249,359.
Meanwhile, the average price paid for a new house in August 2008 was €271,016, while that paid for a second hand house was €270,445. The equivalent levels in December ‘07 were €290,296 and €284,608.