House purchase loans drop by more than a third in 2008

OVER 53,000 loans for house purchase, to the value of €14.5 billion, were paid out in 2008, a drop of 36% in volume and 35% in value on 2007.

Following more than 10 years of strong growth, with a record level of 93,000 housing units being completed in 2006, last year just 51,724 houses and apartments were finished.

Nationally, the number of new houses registered under guarantee schemes for 2008 was 12,676, down 67% compared with 2007. House prices decreased significantly last year, with the average price of a new house being €305,269, and that downward trend will continue, according to the Government’s Annual Housing Bulletin. For example, in quarter 4 2008, the average price of a new house (including apartments) nationally was €282,023, down 10.3% on the same quarter in 2007.