THE average house has lost almost €46,000 of its property-boom value. Prices fell in October for the 20th month in a row.
House prices are now down 15pc from their peak of January/February 2007, according to the latest figures from the Permanent TSB/ESRI house price index.
Over the past year prices are down 10.2pc after average prices nationally showed a fall of 0.8pc in October, a marginally smaller drop than in the previous two months.
However, many economists feel that price declines have been more severe, with a number of estate agencies estimating that prices are already 30pc off their peak.
And new figures out yesterday from the Central Bank seemed to back this up. They showed that residential mortgage lending is at its lowest level in 22 years.
Permanent TSB executive Niall O'Grady yesterday defended the accuracy of the house price index. "The index remains as valid as it was when house prices were rising," he said.
However, he admitted that there was a three-month time lag in the figures. Economists have said the house price index is based on mortgage transactions put through by Permanent TSB and stress that the volume of business Permanent TSB is doing is down relative to its competitors. Mr O'Grady said the latest version of the index has picked up a sharp drop in Dublin house prices, which fell by 2.6pc in the month -- compared with 1.4pc outside Dublin.
If the decline stayed at that level for a year it would translate into an annualised fall of around 30pc, he said.
Across the country prices have fallen by 7.8pc in the first 10 months of 2008, leaving the average price at €265,364. Prices in the commuter counties around Dublin dropped by 1.9pc.
Prices for first-time buyers fell 2.1pc and those for second-time buyers were down 0.4pc. New house prices were 0.5pc lower.
Also yesterday, new figures from the Central Bank said mortgage lending figures for October were "exceptionally weak".
The annual rate of growth in October fell to 7.6pc, the lowest figure since 1986.
The amount of money lent for mortgages rose by just €26m during October, compared with the average monthly increase of almost €2bn at the height of the housing boom in 2006.
Mortgage lending had recovered a little in September after a very quiet August, but the Central Bank says the October figures reflect banks' tightening credit rules for households.
Overall private sector credit grew at an annual rate of 9pc, compared with 10.7pc in September.
Report by Charlie Weston Personal Finance Editor -Irish Independent
House prices are now down 15pc from their peak of January/February 2007, according to the latest figures from the Permanent TSB/ESRI house price index.
Over the past year prices are down 10.2pc after average prices nationally showed a fall of 0.8pc in October, a marginally smaller drop than in the previous two months.
However, many economists feel that price declines have been more severe, with a number of estate agencies estimating that prices are already 30pc off their peak.
And new figures out yesterday from the Central Bank seemed to back this up. They showed that residential mortgage lending is at its lowest level in 22 years.
Permanent TSB executive Niall O'Grady yesterday defended the accuracy of the house price index. "The index remains as valid as it was when house prices were rising," he said.
However, he admitted that there was a three-month time lag in the figures. Economists have said the house price index is based on mortgage transactions put through by Permanent TSB and stress that the volume of business Permanent TSB is doing is down relative to its competitors. Mr O'Grady said the latest version of the index has picked up a sharp drop in Dublin house prices, which fell by 2.6pc in the month -- compared with 1.4pc outside Dublin.
If the decline stayed at that level for a year it would translate into an annualised fall of around 30pc, he said.
Across the country prices have fallen by 7.8pc in the first 10 months of 2008, leaving the average price at €265,364. Prices in the commuter counties around Dublin dropped by 1.9pc.
Prices for first-time buyers fell 2.1pc and those for second-time buyers were down 0.4pc. New house prices were 0.5pc lower.
Also yesterday, new figures from the Central Bank said mortgage lending figures for October were "exceptionally weak".
The annual rate of growth in October fell to 7.6pc, the lowest figure since 1986.
The amount of money lent for mortgages rose by just €26m during October, compared with the average monthly increase of almost €2bn at the height of the housing boom in 2006.
Mortgage lending had recovered a little in September after a very quiet August, but the Central Bank says the October figures reflect banks' tightening credit rules for households.
Overall private sector credit grew at an annual rate of 9pc, compared with 10.7pc in September.
Report by Charlie Weston Personal Finance Editor -Irish Independent