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Recession Wipes €72,250 Off Homes...

Recession wipes €72,250 off value of the average home...


HOUSE prices plunged another 1pc in July, bringing the total wiped off the value of the average home since the height of the property market to €72,250.

New figures show house prices fell by 1.1pc in July, bringing the drop over the previous 12 months to 12.5pc.

The annual fall in prices in June was 11.7pc. The average price for a house nationally in July was €238,828, compared with €311,078 in February 2007, when property prices peaked.

Prices are now down 24pc since February 2007, according to the Permanent TSB/ESRI house price index.

Permanent TSB's Niall O'Grady admitted that the property market had remained sluggish throughout the summer, with low levels of activity.

He said that despite lower interest rates and improved affordability, consumer confidence needed to pick up before there could be any increase in activity.

"It will definitely be a buyers' market for the coming months."

Permanent TSB admitted that the property price figures may not capture recent price falls as the house price index is based on information gathered from mortgage drawdowns.

It may take three months or more between the time a house sale price is agreed and when the mortgage is drawn down.

The index shows much sharper price falls in Dublin than the rest of the country.

Prices in Dublin dropped by 2.2pc in July, having fallen by 17.1pc in the 12 months to July. The average price for a house in the capital is €312,822, down from €351,096 last December.

Outside of Dublin the fall was 1.2pc, and 11.1pc in the past year. Houses outside the capital cost an average of €209,484, compared with €223,984 a year ago.

Buyers

House prices for first-time buyers dropped by almost 1pc in July, and are now down by 19pc in a year. The average price paid by a first-time buyer is now €198,411, down from €224,153 in December last year.

Second-time buyers saw prices fall by 1.1pc in July, which takes the prices of these properties down almost 10pc in a year.

Prices for second-hand houses now average €275,894, compared with €296,302 in December last year.



Report by Charlie Weston - Irish Independent.

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