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Irish Property Free Fall...

House prices now falling faster than ever...


HOUSE prices are falling more steeply than ever, as sellers discount heavily to try to secure a sale.

Average prices nationally fell by 1.4pc in January, compared to falls of 0.8pc in October, 0.5pc in November and 0.9pc in December, according to the latest Permanent TSB/ESRI house price index.

Prices were down by 9.8pc in the 12 months to January, compared to a fall of 9.1pc in the year to December.

The average price paid for a house nationally last month was €258,006, down €3,500 on December 2008, and compared with a peak price of €311,078 in January 2007.

The price falls have increased in recent months, said Permanent TSB manager of business strategy Niall O'Grady.

"The pace of reductions is clearly accelerating due to deepening price discounting in the market in an attempt to clear existing stock," he said.

Dublin house prices were worst hit, falling by 1.4pc in January, whereas there was a reduction of 0.6pc for houses outside the capital.

Overall, Dublin prices are down 12.4pc in the 12 months to January 2009, and by 9.9pc outside Dublin.

The average price for a house in Dublin last month was €346,274, 50pc dearer than it was outside Dublin. The commuter belt in counties Louth, Meath, Kildare and Wicklow have seen falls of nearly 17pc, with prices now down to €265,550 on average.

First-time buyers have enjoyed sharper price falls in the last 12 months than those moving home, with their prices down by 13.5pc, compared to 8.9pc for second-time buyers.

The average price paid by a first-time buyer in January was €222,371, down nearly €2,000 since December. New houses fetched an average price of €263,000, while second-hand homes fetched €253,584.




Report by Aideen Sheehan - Irish Independent.

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