House Price Fell

DUBLIN (Dow Jones)--Irish house prices fell 13% on the year in August, from a drop of 12.5% in July, according to research from independent think-tank Economic & Social Research Institute and Permanent TSB bank Monday. On a monthly basis, the average house price in August was down 1.5%, versus falls of 1.1% in July, 1.5% in June and 1.3% in May, according to the monthly survey. The average price paid for a house nationally in August was EUR235,260, down from EUR261,573 at the start of the year, and down 24% from a peak of EUR311,078 in February 2007. Economists expect house prices to slip further. "The rate of decline has been more dramatic during the summer due to low activity in the market and no confidence in any recovery this side of 2010," said Permanent TSB General Manager of Business Strategy Niall O'Grady. He added that prices have started to fall faster recently in the Dublin region due to the high level of surplus stock available. The government has said it will scrap stamp duty on residential purchases in December's budget. Permanent TSB's Index of House Prices, developed in conjunction with the ESRI, is based on monthly mortgage sales in the Republic of Ireland, and is one of the most closely watched indexes of its kind. -By Quentin Fottrell, Dow Jones Newswires; +353-1-676-2189; quentin.fottrell@dowjones.com Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=T8ZKY07wPDWtrJ1DMHaoMw%3D%3D. You can use this link on the day this article is published and the following day.