Dublin house prices 'down by 49%'

House prices in Dublin have fallen by 49% from their peak in 2006, according to new data released today, with prices nationwide down by 42.9%.

Property prices here are now down to levels last achieved in the fourth quarter of 2002, according to estate agent Sherry Fitzgerald which published the figures in its property index today.

However it also indicated that the rate of decline was slowing, in the capital at least.

The index revealed that the average price of a second-hand property in Dublin fell by 2.5% in the second quarter of this year, an improvement on the contraction of 3.1% in quarter one. This brings the total drop in prices to 13.4% during the 12 months to June 2010.

Nationwide, the average price of a second-hand house in Ireland fell by 2.8% in the second quarter, unchanged from the previous quarter. This brings the total drop in prices to 13.5% during the 12 months to June 2010.

"There is no doubt that the overall market remains challenging," said Marian Finnegan, Chief Economist, Sherry FitzGerald.

However she said there were "emerging signs of cautious confidence", with a moderation in the pace of price correction and an increased number of transactions, especially in Dublin.

Ms Finnegan said price trends indicated that the Dublin property market could bottom out before the end of the year.

"That said, there are obvious potential future risks to this associated with the performance of the economy, the interest rate cycle and liquidity restrictions in the financial markets," she however warned.