Worst not over as house prices fall even further
For the first eight months of the year prices nationally fell by 6pc, compared to 5.2pc to July
THE rate of house price decline is increasing again after several months of slowing falls.
Prices fell 0.9pc in the month, to take the fall for the year to 9.9pc, according to the ESRI/Permanent TSB house price index.
The fall in house prices had been 9.4pc which had prompted some commentators to predict last month that the worst was over. But now, the rate of decrease is on the up. The price decline of 0.9pc in August compared with reductions of just 0.2pc in July, 0.6pc in June, 1.2pc in May and 1.1pc in April.
The average price of a house is now down by €30,000 in the past year to €270,493.
Permanent TSB's Niall O'Grady said: "The very low rate of decline in July was clearly an aberration from the trend over the past few months. August re-establishes that trend and it's likely to continue through the rest of this year."
For the first eight months of the year prices nationally fell by 6pc, compared to 5.2pc to July.
Housing experts said the dramatic events in banking this week would not help the housing market here as mortgages will continue to be restricted.
Reduced
Dublin house prices fell by 0.8pc in August while houses outside Dublin reduced by 1.3pc. Over the past year Dublin house prices have now fallen by 8.8pc, with those outside the capital dropping by 9.5pc.
House prices in the capital now average €374,302 -- a fall of €23,205 in the past year.
First-time buyers saw prices come back by 1.2pc in August to take the annual fall to 9.8pc. The average price paid by a first-time buyer in August was €242,568, a drop of €18,216 on last year's price.
Prices of new houses fell by 0.4pc in August, to take the annual fall to 8.7pc. For second-hand houses the August drop was 1pc, with the average price now 10.5pc lower than it was a year ago.
The average price paid for a new house in August 2008 was €271,016, while a second-hand house was €270,445.
Meanwhile, figures from the Department of the Environment yesterday showed that construction activity also continues to weaken.
The number of house completions in August dipped to 3,605, bringing the total for the first eight months to 35,714.
- Charlie Weston Personal Finance Editor
