Fall in house prices accelerating

The average price of a house in Dublin fell by 4 per cent last month, while prices across the State have continued their precipitious…

The average price of a house in Dublin fell by 4 per cent last month, while prices across the State have continued their precipitious decline, according to the latest official figures from the Central Statistics Office (CSO).

The monthly data will make for grim reading for anyone hoping that the bottom of the property market is in sight and the figures show that the decline in prices actually gathered pace in January

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 of January, 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 that was recorded in January last year.

House prices in Dublin are now 55 per cent lower than they were 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.

According to a study by property website daft.ie which was published yesterday, the majority of would-be buyers believe mortgage availability, the recession and unemployment will continue to have a negative impact on house prices in the coming year.