Rate of house price decline increases

House prices are continuing to fall according to the latest edition of the permanent tsb/ESRI house price index.

Average national house prices decreased by 1.5% in August compared to reductions of 1.1% in July and 1.5% in June.

Over the first eight months of this year, prices have gone down by more than 10%, which is 4% more than they fell by for the same period in 2008.

The average price for a house nationally in August was €235,000 compared with €261,000 in December.

National prices according to the index have fallen by almost 25% since the price peak in 2007.

"The rate of decline has been has been more dramatic during the summer due to low activity in the market and no confidence in any recovery this side of 2010," said Niall O’Grady, general manager business strategy, permanent tsb.

"Recently prices have started to fall faster in the Dublin region due to the high level of surplus stock available."

Dublin house prices fell by 1.9% in August while there was a reduction of 2.4% for houses outside Dublin.

In July, the relative price changes were -2.2% and -1.2%. House prices were reduced by 18% and 12.1% in the 12 months to August 2009 in Dublin and Outside Dublin respectively.

The equivalent rates to July were reductions of 17.1% and 11.1% respectively.

Through the first eight months of 2009 prices in Dublin and Outside Dublin fell by 12.6% and 8.7% respectively.

The average price for a house in Dublin and outside Dublin in August was €306,795 and €204,524 respectively.

The equivalent prices in December were €351,096 and €223,984.

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