Dublin house prices 'halved since peak'

A new study finds house prices in Dublin have nearly halved since values peaked in 2006.

Sherry Fitzgerald said the first quarter of this year saw the national market contract by 2.8% compared to 8.3 for the same period in 2009.

The index, which records second hand house prices, finds property has devalued to levels last seen in 2003.

The average price of a second-hand property in Dublin fell by 3.1% in the first quarter of the year, bringing the total drop in prices to 16% during the 12 months to March. This compares to a contraction of 10% in the opening quarter of 2009, according to the Sherry Fitzgerald index.

The Cork market saw prices falling by 2.4% in the opening quarter, bringing the results for the 12 months to minus 16.0%.

"From the peak of the market in 2006, Dublin house prices have fallen in real terms by 46.8%, while the national market has corrected by 41.2%," a statement said.

"This in effect means that prices in Dublin and Ireland are back at levels achieved in opening quarter of 2003."

“The housing market continued to correct in the opening months of 2010, but notably at a much reduced pace, particularly compared to the same period in 2009," said Marian Finnegan, Chief Economist, Sherry FitzGerald.

"There is no doubt that it is still too early to call the bottom of the overall market but the emerging evidence continues to support a view that the Dublin market is beginning to bottom out.

"This trend could be disrupted by events such as rising interest rates, or other factors which could negatively impact confidence. However, if current trend lines persist there is every reason to believe that the Dublin market will stabilise during the latter half of 2010."