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Dublin House Prices Down 60pc...

HOUSE prices in Dublin have gone into a 60pc freefall from their peak and are now at levels last seen in 2002.

The cost of buying a home in Dublin fell by 16pc in June compared to the same period last year.

In real terms, Dublin house prices have fallen by 60.2pc, from the peak of the market in 2006, according to Sherry FitzGerald estate agents.

The national market has corrected by 55.2pc and the average cost of a second-hand house in Ireland dropped by 15.3pc. First-time buyers remain the most active sector in the market, accounting for almost one-third of the properties traded in the year to date.

Chief economist Marian Finnegan with Sherry FitzGerald said the falls placed the Irish property recession as one of the most significant recessions in the post-war era.

"Accelerating deflation in the property market cycle is somewhat contradictory as the factors underpinning the market have strengthened with improved affordability and relatively tight supply, particularly for family homes in the urban centres," he said.

"However, the appetite for the volume of transactions required to stabilise the market is hampered by low consumer sentiment and a dysfunctional mortgage market."

Report - Evening Herald

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