Average national house prices reduced by 1.1% in July according to the latest edition of the permanent tsb / ESRI House Price Index. This compares to reductions in June (-1.5%), May (-1.3%) and April 2009 (-1.9%).
In the first seven months of 2009 national house prices have fallen by 8.7% which compares to a reduction of 5.2% in the same period in 2008. Measured over the 12 months (year on year) to July, national prices were down by 12.5%. This compares to a decline of 11.7% recorded in the 12 months to June 2009.
The average price for a house nationally in July 2009 was EUR 238,828, compared with EUR 261,573 in December and a peak of EUR 311,078 in February 2007.
Commenting on the results, Frank Doonan of ERA Ireland reported that transaction levels remained very low through the summer months but with most ERA brokers reporting a marked increase in viewings. Properties in the value end of the market have been moving albeit slowly and as properties in the €250,000 to €350,000 continued to fall in price there was increased interest.
"Availability of finance is still a huge issue with few banks meaningfully open for business" says Doonan."First time buyers are finding it hard to save or raise the sizable deposit now needed to buy a home and thats for the lucky few who currently meet the banks exacting standards of mortgage qualification.However there is hope for improvement in the autumn as the banks begin to normalise lending practices in a post NAMA environment" Doonan stated.
