Oh dear, it looks as though house prices are falling for the second month in a row across the country.

The latest report from the Permanent TSB/ESRI house price index shows that the average house price in April dropped by 0.8 per cent - down €2,452.

It was the second disappointing month, after March when prices fell by 0.6 per cent.

The overall picture is that, in the first four months of 2007, prices nationally fell by 1.3 per cent, compared to growth of 5 per cent in the same period last year.

It was better news in Dublin where prices grew by a fraction - 0.1 per cent - in April.

While that doesn't suggest that the market is recovering, it could be read as positive news as more and more first-time buyers finally take the plunge now that prices have become a little more realistic.

Prices on virtually all new homes aimed at first-time buyers have been trimmed back by various amounts up to around 15 per cent.

Builders who won't cut their prices are losing out to their competitors who have to keep the bank manager happy.

Meanwhile, we notice that investors are quietly nipping back into the market now that there is value to be had and that rents are holding up very well indeed.

Interest-only deals are the order of the day as landlords find that, at cheaper prices, rental units will actually wash their own face.