HOUSE PRICES fell at their fastest annual rate in two years last month, with properties in Dublin being particularly affected, the latest official figures show.
The average price of a house in Dublin fell by four per cent last month alone, according to new data from the Central Statistics Office (CSO).
The price of residential property elsewhere in the State has also continued its downward spiral.
The monthly data will make for grim reading for anyone hoping that the bottom of the property market is in sight, with the figures showing that the decline in prices actually gathered pace in January compared with the preceding months.
Property experts said prices are likely to fall by well in excess of 10 per cent this year despite some positive news in recent weeks on the jobs front.
The new figures indicate the cost of an average home in the Republic fell by 17.4 per cent in the 12 months to the end of last month. This figure compares with an annual rate of decline of 16.7 per cent in December and a fall of 10.7 per cent which the CSO recorded in the 12 months to the end of January 2011.
Residential property prices across the State fell by an average of 1.9 per cent last month, which compares with a monthly decline of 1.7 per cent in December and 1.1 per cent last January.
Dublin property prices were worst hit, falling by 4.1 per cent last month. The price of residential property in the capital is now 21.1 per cent lower than it was a year ago. The price of residential properties across the rest of the Republic fell by 0.7 per cent in January, a similar rate of decline recorded at the same time last year.
House prices in Dublin are now 55 per cent lower than at their highest level in early 2007, while apartments are 59 per cent cheaper.
The fall in the price of residential properties outside of Dublin is somewhat lower, at 43 per cent.
The comprehensive index, which is now widely considered to be the benchmark of property prices, gives detailed data by type of property and by location.
Commenting on the latest CSO figures, Angela Keegan of property website MyHome.iesaid she wasn't overly surprised given the low levels of consumer confidence.
“We believe house prices won’t stabilise until the economic situation improves, the number of people unemployed is reduced and financing becomes more accessible,” she said.
She added that while there had been some positive news on the jobs front and some positive measures aimed at boosting the property market in the budget – “four years of continuous house price falls won’t be reversed in one month”.
She also pointed out that, as the number of transactions tend to be low in December and January, “any analysis based on these figures comes with that caveat attached”.
Ms Keegan believes that price falls in the low to mid-teens are likely again in 2012.
“When the recovery starts, it will happen in Dublin and [in] urban areas first. The emergence of a variety of micro markets looks set to continue and national figures or trends might not always be reflected in these micro markets,” she added.
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