Leadership

Irish house prices continue to fall in Q2

29.07.2010
The average price of an Irish house fell by 1.7pc during the second quarter of the year, the latest quarterly house-price index from the ESRI and Permanent TSB has shown.

According to the index, average national house prices are now back at 2002 levels.

While the price of houses are still declining, this latest fall is the lowest quarterly reduction since the second quarter of 2008. It also compares to a 3.9pc fall in house prices during the corresponding quarter in 2009 and a 4.8pc fall in house prices during the first quarter of this year.

Looking across the first six months of 2010, the index showed that Irish house prices fell by a total of 6.4pc. This compares to a fall of 8.1pc during the first six months of 2009.

The average price for a house nationally in the second quarter of 2010 was €201,364, compared with €242,593 in the second quarter of 2009 and €311,078 at their peak.

National house prices have fallen 35pc since the price peak at the end of 2006.

The ESRI/Permanent TSB index showed that Dublin house prices fell by 3.5pc in the second quarter of 2010. This compares to a reduction of 10.3pc in the first quarter of 2010 and a 7.5pc price fall in the last quarter of 2009.

The average price for a house in Dublin at the end of the second quarter of 2010 was €242,000, compared to €250,872 in the first quarter of 2010.

Meanwhile house prices outside Dublin fell by 0.8pc in the second quarter of 2010. This compares to a 3.5pc fall in the first quarter and a reduction of 6.2pc in the fourth quarter.

The average price for a house outside of Dublin at the end of the second quarter of 2010 was €181,820, compared with €183,309 in the first quarter of 2010.

“While prices continue to fall at different levels in Dublin versus the rest of the country, this reduction in Quarter 2 is the lowest recorded quarterly fall in almost two years. This may indicate that prices are starting to find a more sustainable level after almost three-and-a-half years of decline,” said Permanent TSB general manager Niall O’Grady.