The latest TSB ESRI house price index has been published. Prices are still falling. So far, NAMA has managed to stave off a full-scale fire-sale of empty property.
It appears to me that the budget and 4 year plan, as it will cut employment and reduce disposable income, will further pressure house prices downward.
The latest permanent tsb/ESRI house price index shows that house prices have fallen 36% since the peak at the end of 2006.
Last quarter’s fall of 1.3% is the lowest quarterly reduction since the second quarter of 2008 (April-June inclusive) and compares to a reduction in the second quarter of this year of 1.7%.
The fall in average national house prices in the first nine months of this year was 7.6%. This compares with a fall of 11.7% in the first nine months of last year.
The year-on-year decline (quarter three 2009 to quarter three 2010) was 14.8% and compares to a reduction of 17% year-on-year to the second quarter of 2010.
The average price for a house nationally in the third quarter of this year has fallen below €200,000 to €198,689, compared with €233,137 in the third quarter of last year and €311,078 at their peak.
Commenting on the figures, general manager with Permanent tsb Niall O’Grady said it might be too early to say house prices had reached the bottom.
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