Permanent TSB/ESRI Survey Shows House Prices Down 2.6% So Far This Year

In June, the index records that the average price paid for a house in Ireland in June was euro1,561 less than that paid in May; a reduction in national prices of 0.5% in the month.

This follows the reduction in national house prices of 0.8% in May and April and 0.6% in March.

Measured over the past 12 months (up to and including June), the average national price paid for a house in Ireland was 0.9% higher in June 2007 than the price paid in June 2006.

The average price paid for a house nationally in June 2007 was €302,605, compared with €310,632 in December 2006.

Commenting on the results, Niall O'Grady, Head of Marketing, permanent tsb bank said; "These figures put the reality of what is happening in the housing market in Ireland into context. After a decade of exceptional growth, house prices have reduced in the first six months of this year by just 2.6% - significantly less than many people were anticipating.

"The picture of course varies sector by sector but on the whole over the past six months, the market has been adjusting well to a higher interest rate environment. Importantly the fundamentals of a strong economy and strong demographic growth remain in place and will continue to underpin the market into the future."

Dublin vs. The Rest Of The Country

Dublin house prices declined by 1.3% in June while there was a reduction in prices of 0.9% for houses bought outside Dublin. In May 2007 the relative price changes were -1.2% and -0.8%. Over the first half of this year, prices were down by 2.0% and 3.2% respectively.

However in the 12 months to the end of June 2007, house prices in Dublin grew by 4.1%. Outside Dublin they reduced by 0.4% over the same period. The equivalent rates to May 2007 were (plus) 7.6% and (plus) 1.5% respectively.

The average price paid for a house in Dublin and outside Dublin in June 2007 was €418,905 and €257,945 respectively. The equivalent prices in December 2006 were €427,343 and €266,339.

The Commuter Counties: Louth, Meath, Kildare And Wicklow

House prices in the commuter counties of Dublin declined by 0.7% in June 2007, compared to growth of 0.3% in May 2007. During the first half of this year prices reduced by 3.9%. Year on year growth to June 2007 in the Commuter counties was (plus) 0.9%. This was lower than the (plus) 3.0% recorded in the 12 months to May 2007.

The price of a house in the commuter counties in June 2007 was €330,712, down from €344,186 in December 2006.

New vs. Existing Houses

House prices for new houses were down by 0.7% in June while the price for existing houses decreased by 0.3%.

In May this year the relative price changes were minus 1.0% and minus 0.8% respectively for new and second hand houses. During the first half of this year prices reduced by 1.2% and -2.7% respectively.

New and second hand house prices grew by 1.7% and 1.0% respectively year on year to June 2007. The equivalent rates of growth to May 2007 were 3.3% and 2.4% respectively.

The average price paid for a new house in June 2007 was €298,962, while that paid for a second hand house was €304,391. The equivalent levels in December 2006 were €302,645 and €312,709.