Average national house prices in Ireland fell by 1.7% in Q2 2010 according to the latest permanent tsb / ESRI House Price Index Quarterly Review. This is the lowest quarterly reduction since Q2 2008 [April – June inclusive] and compares to a reduction in Q1 this year of 4.8% and a reduction of 3.9% in Q2 2009.

The reduction in average national house prices in the first six months of this year was 6.4%. This compares to a fall of 8.1% in the first six months of last year [2009]. The year on year decline (Q2, 2009 to Q2, 2010) was 17.0% and compares to a reduction of 18.9% year on year to Q1 2010. The average price for a house nationally in Q2, 2010 was EUR 201,364, compared with EUR 242,593 in Q2 2009 and EUR 311,078 at their peak. National prices have fallen 35% since the price peak at the end of 2006.

In the capital city, Dublin house prices fell by 3.5% in Q2 2010. This compares to a reduction in Q1 2010 of 10.3% and a reduction of 7.5% in Q4 2009.

The reduction in the first six months of 2010 was 13.5%, and compares to -12.2% in the same period 2009. The year on year decline in Dublin (Q2 2009 to Q2 2010) was 24.6% and compares to a reduction of 24.5% year on year to Q1 2010. The average price for a Dublin house in Q2 2010 was EUR 242,000, compared with EUR 250,872 in Q1 2010.

House prices outside Dublin fell by 0.8% in Q2 of 2010. This compares to a reduction in Q1 2010 of 3.5% and a reduction of 6.2% in Q4 2009. The average price for a house Outside Dublin in Quarter 2 2010 was EUR 181,820, compared with EUR 183,309 in Quarter 1 2010.

Niall O’Grady, general manager with permanent tsb, said “While prices continue to fall at different levels in Dublin versus the rest of the country, this reduction in Q2 is the lowest recorded quarterly fall in almost two years. This may indicate that prices are starting to find a more sustainable level after almost three and a half years of decline”