In the final quarter of last year, the monthly average price change was -1.3%, indicating that the rate of house price decline is easing.
In the 12 months (year on year) to February, average national prices were down by 8.8%. This compares to a decline of 8.1% recorded in the 12 months to January. The average price paid for a house nationally in February 2008 was andeuro;283,650, compared to andeuro;287,887 in December 2007.

'Sellers are finally grasping the point that people are interested in buying properties if the prices sought are realistic'

Commenting on the results, Niall O'Grady, general manager marketing, permanent tsb bank said: I think the rate of price decrease over the first two months of the year is lower than many people might have expected. We are also seeing that some sellers are finally grasping the point that people are interested in buying properties if the prices sought are realistic. This in turn is leading to more market transactions when compared to quarter 4 2007.
Dublin house prices fell by 1.1% in February while there was a reduction of 1.3% for houses outside Dublin. In January the relative price changes were -0.6pc and -0.9pc.
House prices were reduced by 8.9% and 8.8% in the twelve months to February 2008 in Dublin and outside Dublin respectively. The equivalent rates to January were 7.7% and 7.6% respectively.
The average price paid for a house in Dublin and outside Dublin in February 2008 was andeuro;390,877 and andeuro;243,826 respectively. The equivalent prices in December 2007 were andeuro;397,507 and andeuro;249,359.
According to Deirdre Ryan, economist at Goodbody Stockbrokers: andldquo;Given that the index peaked in February 2007, it is slightly encouraging that the annual comparatives become somewhat easier in the months ahead, although further monthly declines are still expected.

'We may see the gap between new and existing housing narrow further in the months ahead'

andldquo;The pattern of price declines in the Dublin area has largely mirrored the national trend in recent months, despite anecdotal evidence of more extensive price cuts in the capital region, especially in the new housing sector. This decline in new house prices continued in the latest months data with a 0.4% monthly decline in this category, similar to January's fall. After a prolonged period where new house prices were holding up relatively well versus those in the existing sector, this gap has narrowed significantly in recent months. Given that the recent cuts in a range of new housing developments would not be picked up in these data just yet, we may see the gap between new and existing housing narrow further in the months ahead.andrdquo;

'Further monthly falls are still likely to feature in the index in the months ahead'

Despite the rate of house price falls slowing, Ryan believes that further decreases are likely in the coming months. andldquo;While the monthly declines in the opening months of the year have been relatively moderate compared to those in the final quarter of last year, (average monthly price decline in Oct - Dec was -1.3%), further monthly falls are still likely to feature in the index in the months ahead. The permanent tsb house price index is a lagging indicator and the latest monthly reading reflects transactions that took place in the final quarter of 2007.
andldquo;While there has been a pickup in activity levels relative to that period, as suggested by our recent Housing Market Survey, there has been little evidence to suggest that prices have bucked their softening trend. Indeed, the continued high level of inventory (we estimate the existing homes stock for sale is equivalent to at least 12 months supply) further underlines the fact that further price declines are likely and we estimate that this will be in the order of -7% for the current year,andrdquo; Ryan said.

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