Average house price on the slide
Published 24/07/2012 | 12:32
House prices began to slide again last month after the first increase since the property crash hit hard in early 2007.
Official figures revealed the average cost of a home is down by 14.4% over the last 12 months and down 1.1% last month alone.
That drop is a return to the long-running trend of collapsing prices which hit the market over the last five years.
The Central Statistics Office (CSO) said that property was down by 0.8% in Dublin and 1% in the rest of the country in June.
Overall, property prices are now half of what they were in early 2007, the CSO said.
Although the statistics body does not give actual prices, houses in Dublin were believed to be worth about 431,000 euro at the height of the boom and over the last five years have had 245,670 euro wiped off the value.
The June review found that the impact of the crash outside Dublin is less severe with prices down 47%, while apartments buyers and investors have been hard hit with values in Dublin 62% down on the peak.
There had been hints of recovery in May as the CSO reported an overall increase of 0.2%.
Davy stockbrokers said the report confirmed that suggestions of a turnaround in the property market had been premature.
They also noted that the June drop more than reverses the slight increase seen in May and with weak bank lending, high unemployment and oversupply there is no sign of a turning point in the Dublin market and overall prices will come down further.