Average national house prices declined by 1.3% in October, according to the latest edition of the permanent tsb / ESRI House Price Index.   This compares to a decline of 0.3% in September. Measured over the past twelve months [October 2006 to October 2007 inclusive], the index shows that average prices declined by 4.7% of that period.  Measured since the start of this year, that decline has been 4.9%.

The average price paid for a house in Ireland in October now stands at EUR 295,469, compared with EUR 309,963 in October last year.  

The house price index measures the movement of house prices on a month by month basis.  It is prepared by permanent tsb bank and the ESRI and is considered the most accurate measure of house price movements in the country. 

Commenting on the results, Niall O’Grady, Head of Marketing, permanent tsb bank said; “There’s little surprise in the figures for October which confirm that there was little spark in the market during the traditionally strong autumn selling season.  Clearly potential purchasers remain cautious and demand is sluggish. Deferral of purchase decisions is now beginning to impact on the rental sector where rents are rising steadily in response to strong demand.”

Dublin V Rest of Country:
Dublin house prices declined by 0.4% in October, while prices Outside Dublin declined by 1.3%. In September 2007 the relative price changes were (minus) 1.2% and (plus) 0.1%.  Over the first ten months of this year, prices were down by 5.6% and 4.7% respectively.

In the 12 months to the end of October 2007, house prices in Dublin and Outside Dublin declined by 4.8% and 4.9% respectively.  The equivalent rates to September 2007 were (minus) 3.4% each.

The average price paid for a house in Dublin and outside Dublin in October 2007 was EUR 403,535 and EUR 253,938 respectively. The equivalent prices in December 2006 were EUR 427,343 and EUR266,339.

Commuter Counties: - Louth, Meath, Kildare & Wicklow
House prices in the commuter counties of Dublin declined by 0.1% in October 2007, compared to a slight increase of 0.1% in September 2007. During the first ten months of this year prices reduced by 5.4%. Year on year growth to October 2007 in the Commuter counties was (minus) 5.5%, compared with the (minus) 4.7% recorded in the 12 months to September 2007.

The price of a house in the commuter counties in October 2007 was EUR 325,568, down from EUR 344,186 in December 2006.

3 Bedroom Semi-detached Houses
3 bed semi-detached house prices declined by 0.1% in October 2007, while in September this year prices grew by 0.6%. During the first ten months of this year prices were down by 3.0%.

House prices in this category declined by 2.6% year on year to October 2007 compared with a reduction of 2.4% in the year to September 2007. The price of a 3 bedroom semi in October 2007 was EUR 302,536 - down from EUR 311,906 recorded in December 2006.

First time buyers V. Second time buyers:
House prices in October for first-time and second-time buyers reduced by 1.0% and 1.3% respectively. In September 2007 the average price paid for first time and second time buyers was down 1.6% and 0.3% respectively. During the first ten months of this year prices were down by 6.2% and 5.1% respectively.

House prices declined by 6.1% and 4.9% year on year to October 2007 for first-time and second-time buyers respectively. The equivalent growth rates to September 2007 were (minus) 4.7% and (minus) 3.1% respectively.

The average price paid by a first-time buyer and a second-time buyer in October 2007 was EUR 261,776 and EUR 331,576 respectively. The equivalent prices in December 2006 were EUR 279,003 and EUR349,213.

New V. Existing Houses
House prices for new and existing houses were down by 1.3% and 2.3% respectively in October. In September this year the equivalent price changes were 0.0% and (minus) 2.2%. During the first ten months of this year prices reduced by 3.2% and 7.7% respectively.

Prices for new houses declined by 2.5%, while prices for second hand houses declined by 7.7% year on year to October 2007. The equivalent rates of growth to September 2007 were minus 1.7% and minus 4.8% respectively.

The average price paid for a new house in October 2007 was EUR 292,896, while that paid for a second hand house was EUR 288,654. The equivalent levels in December 2006 were EUR 302,645 and EUR 312,709