Belfast Telegraph

House prices dip to 2002 levels

Average house prices are down to levels last seen in 2002 after a 38% fall from the peak, a survey has revealed.

Experts said prices were still falling at the end of last year but at a lower rate than the same period in 2009.

According to the index compiled by permanent tsb and the ESRI think tank, house prices came down by 10.8% over the course of last year.

The report said the figures compared to a fall of 18.5% in 2009.

Niall O'Grady, permanent tsb general manager, warned the market would not improve much in the coming year.

"With low transaction volumes, continuing price declines and a sluggish economy, the outlook is for a very subdued property and mortgage market in 2011," he said.

The report found the average price being agreed for a house at the end of last year was 191,776 euro, compared with 215,086 euro 12 months earlier, and 311,078 euro at the spring 2006 peak.

Two surveys published earlier this month, from daft.ie and myhome.ie which focus on asking prices, revealed they were down about 40% since the property bubble burst.

The permanent tsb/ESRI study also looked specifically at the Dublin market and found average prices down 15.1% over the year to 237,480 euro. Outside the capital the average was down 8.1% to 174,570 euro.

The permanent tsb house price index is based on agreed sale prices and calculated using data from mortgage drawdowns. There is no official register for the prices paid for homes in Ireland.

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