House prices fell 0.7 per cent in January, a smaller reduction than the falls recorded in each of the last three months of 2007, according to the latest Permanent TSB/ESRI house price index.
Prices fell by 8.1 per cent year on year in January, compared to a 7.3 per cent fall in 2007. The average house in January 2008 cost €285,000, compared with €287,000 in December.
House prices in Dublin fell by 0.6 per cent in January, while houses outside Dublin fell by 0.9 per cent. National house prices fell by 1.3 per cent in October, 1.1 per cent in November and 1.5 per cent in December. The average price paid for a house in Dublin in January was €395,000 and outside Dublin €247,000, compared to €397,000 and €249,300, respectively, in December 2007.
Niall O'Grady, head of marketing at Permanent TSB, said: "The rate of national house price reduction slowed in January compared to the experience in the final months of 2007. There is mounting evidence that sellers are adjusting to more realistic asking prices and buyers are getting better value."
