permanent tsb/ESRI House Price Index – May 2009

• Figures show rate of decline in national house prices of 1.3% in May
• Nationally prices down 6.2% in first five months but prices for first-time buyers continue falling fastest at 9.2%
• National prices now back to Summer 2004 levels

Thursday 25th June 2009: Average national house prices reduced by 1.3% in May according to the latest edition of the permanent tsb / ESRI House Price Index. This compares to reductions in April (-1.9%), March (-1.0%) and February 2009 (-0.8%).

Measuring the rate of growth in the 12 months (year on year) to May, national prices were down by 10.9%. This compares to a decline of 10.7% recorded in the 12 months to April 2009. In the first five months of 2009 national house prices have fallen by 6.2% which compares to a reduction of 4.4% in the same period in 2008.

The average price paid for a house nationally in May 2009 was EUR 245,295, compared with EUR 261,573 in December and a peak of EUR 311,078 in February 2007.

Commenting on the results, Niall O'Grady, General Manager Business Strategy, permanent tsb said "Ongoing low demand combined with a significant overhang of properties for sale continues to drive prices down, particularly in segments such as first time buyers and houses in Dublin. Any improvements in affordability due to lower prices and lower interest rates will likely be ignored until economic confidence returns".

Dublin V Rest of Country

Dublin house prices fell by 2.2% in May while there was a reduction of 0.4% for houses outside Dublin. In April the relative price changes were -1.1% and -1.7%.

House prices were reduced by 14.8% and 10.5% in the twelve months to May 2009 in Dublin and Outside Dublin respectively. The equivalent rates to April were reductions of 14.3% and 10.8% respectively.

In the first five months of 2009 prices in Dublin and Outside Dublin have fallen by 7.7% and 4.7% respectively.

The average price paid for a house in Dublin and outside Dublin in May was EUR 323,973 and EUR 213,491 respectively. The equivalent prices in December were EUR 351,096 and EUR 223,984.

Commuter Counties: - Louth, Meath, Kildare & Wicklow

House prices in the commuter counties of Dublin fell by 0.6% in May 2009, compared to a decline of 1.4% in April. A year on year reduction to May 2009 in the Commuter counties at minus 17.6% compares with a decline 17.8% in the 12 months to April. In the first five months of 2009 prices fell by 5.4%.

The price of a house in the commuter counties in May 2009 was EUR 252,811, down from EUR 267,265 in December.

First time buyers V. Second time buyers

House prices for first-time and second-time buyers fell by 1.4% and 0.5% respectively in May 2009. In April the equivalent rates showed reductions of 4.1% and 0.8%.

House prices were reduced by 17.6% and 8.6% year on year to May 2009 for first-time [FTB] and second-time buyers [STB] respectively. The equivalent rates to April were a fall of 17.4% and 9.5% respectively.

In the first five months of 2009 prices for FTBs & STBs have fallen by 9.2% and 4.9% respectively.

The average price paid by a first-time buyer and a second-time buyer in May 2009 was EUR 203,560 and EUR 281,689 respectively. The equivalent prices in December were EUR 224,153 and EUR 296,302.

New V. Existing Houses

House prices for new and existing houses were reduced by 2.1% and 0.1% respectively in May 2009. In April the relative price reductions were 2.6% and 1.5%.

New and second hand house prices fell by 11.5% and 10.4% respectively year on year to May 2009. The equivalent rates to April were minus 11.1% and minus 11.7% respectively.

In the first five months of 2009 new and existing house prices were reduced by 8.2% and 4.2% respectively.

The average price paid for a new house in May 2009 was EUR 244,586, while that paid for a second hand house was EUR 246,165. The equivalent levels in December were EUR266,466 and EUR 256,956.

[Please note 3 Bed Semi price index is currently not available due to the low sample size.]

View the full list of House Prices

Editors Notes
The permanent tsb house price index is a 3 month moving average. The index is based on the agreed sale price and is calculated using data from mortgage drawdowns. Therefore a lag may exist between the time the sale price is agreed and when the mortgage is drawn down.

Further Information/Comment:
Niall O'Grady
General Manager Business Strategy
Ph: 087 2921998

Issued by:
Maria Whitmore
Gordon MRM
Ph: 087 2377105