IL&P/ESRI price survey hit by drop in residential home loans
THE house price survey carried out using mortgage drawdowns supplied by Permanent TSB will no longer be published monthly because not enough mortgages are being issued to provide accurate monthly data.
The index is put together by the Economic and Social Research Institute (ESRI) based on sale prices extracted from Permanent TSB mortgages.
Sales, prices and credit availability have all been hit by the bursting of the property bubble.
Permanent TSB's Niall O'Grady denied that the lender was issuing so few new mortgages that moving from publishing the index monthly to quarterly would make little difference.
He insisted that Permanent TSB was still issuing mortgages.
However, it is generally acknowledged that the lion's share of new mortgages are being issued by AIB, Bank of Ireland and EBS Building Society.
Mr O'Grady said the entire mortgage market was down two-thirds on last year. The next edition of the house price index will be issued in the third week of April.
Last month Permanent TSB and ESRI said that average national house prices in Ireland fell by 18.5pc in 2009.
The average price for a house nationally in December 2009 was €213,183, compared with €261,573 in December 2008 and a peak of €311,078 in February 2007, according to the index.
National prices have fallen 31.5pc since the peak of the housing market.