House prices set to slump further despite signs of sales activity

HOUSE prices are likely to plunge faster than expected to hit rock-bottom but there are some signs of activity in the market.

Joan Henry, head of research at Savills Ireland, one of the country’s leading property firms, said the drop in house prices that the Central Bank is building into its scenarios for 2011 to 2013 are likely to materialise and data would indicate that price drops of 55%-60% are already in effect on the ground, particularly in prime locations.

She said they are seeing evidence that where prices have been adjusted from the peak by these amounts, sales are taking place again.