House prices at summer 2004 levels

Average national house prices fell by 1.9 per cent in April and by 10.9 per cent over the past year, according to the latest edition of the permanent tsb / ESRI House Price Index.

In the first four months of 2009 national house prices have fallen by 4.9 per cent. This compares compared to a reduction of 3.3 per cent for the same period a year ago.

The average price paid for a house nationally last month was €248,640, down from €261,573 in December and a peak of €311,078 in February 2007.

Dublin house prices fell by 1.1 percent in April while prices outside the capital were down 1.7 per cent.

The average price paid for a house in Dublin was €331.206, down from €351,096 in December. Outside of the capital, house prices fell from €223,984 a the end of last year to €214,445 in April.

“This is the fastest rate of decline in national prices that we have seen to date since the index started in 1996. The particularly dramatic reduction in prices for first time buyers reflects their reluctance to buy in a market that is still declining and where unsold properties are being reduced further," said Niall O’Grady, general manager business strategy, permanent tsb

Over the year, house prices have declined by 14.3 per cent in Dublin and 10.8 per cent elsewhere.

In the first four months of 2009 alone prices in the capital have fallen by 5.7 per cent. Outside Dublin, house prices fell by 4.3 per during the same period.

In the commuter counties of Louth, Meath, Kildare and Wicklow, prices fell by 1.4 per cent last month and by 17.8 per cent over the year.

During the first four months of 2009 prices paid in the commuter counties fell by 4.9 per cent from €267,265 to €254,281.

House prices for first-time and second-time buyers continue to decline, falling by 4.1 per cent last month to €206,530.

Over the year to April the cost of purchasing a home for first-time buyers fell by 17.4 per cent.

In the first four months of 2009 prices for first-time buyers dropped 7.9 per cent.

The cost of a new home was reduced by 2.6 per cent last month and by 11. per cent over the year with the average cost now €249,785, In December the average cost of a new house was €266,466.

Second-hand house prices also continue to fall, declining by 1.5 per cent last month and 11.7 per cent year-on-year.

The average price paid for a second-hand house last month was €246,390, down from €256,956 in December.

Commenting on the latest figures, Alan McQuaid, chief economist with Bloxhams Stockbrokers said that he expected house prices to fall by a further 10 to 15 per cent before bottoming out.

"The bottom line is that the Irish property market is heavily entrenched in a deflation spiral and, given the myriad of factors that have led to its creation, it is unlikely to recover anytime soon," he said.