Second-hand house prices tumble

Estate agents Sherry FitzGerald announced today that the average price of a second-hand property in Ireland fell by 4.5% during the second quarter of 2008, compared to a price reduction of 1.9% in the first quarter of 2008.

The results for the 12 months to June show a price reduction of 10.2%.

The results for the Dublin market are even more pronounced with price reductions of 5.4% in the quarter and 11.4% in the year to June 2008.

The Cork market recorded price deflation of 3.2% in the quarter and 10.3% in the twelve months to June.

Commenting on the results Marian Finnegan, chief economist for Sherry FitzGerald said: "The results of the price barometer illustrate that the reprieve in the pace of price inflation evident in the first quarter has abated.

"The combination of the tightening of liquidity in the market, the threat of potential interest rate increases and concerns about the future stability of the economy has brought about fresh wave of price correction."