Irish house prices continue to fall at an alarming rate. According to the latest data from the Central Statistics Office house prices across the country fell by a further 17.4% in the year to the end of January. Worse, the rate of decline continues to accelerate. In December 2011 house prices in Ireland finished the year with a 16.7% year on year drop, which was faster than November, which in turn saw the decline accelerate compared to October. From another angle, in January 2011 the year on year drop was 10.8%, compared to 17.4% now.
The month on month decline is also accelerating according to the CSO. In January house prices across Ireland fell 1.9% on the month, this is slightly up on December's 1.7% month on month fall, and substantially higher than the 1.1% month on month decline registered last January.
Dublin continues to be by far the hardest hit, with prices now down by 55% since the 2007 peak. In January Dublin house prices were down 4% compared to December, and down 21.7% compared to the previous year. According to the report residential property prices in Dublin have now fallen 57% since February 2007. Taking Dublin out of the equation, residential property prices in Ireland are down 43%, and the overall decline including Dublin is 48%.
Dermot O'Leary, chief economist at Goodbody, commented that the official house price index still catching up.
"The official index suggests that residential property prices have now fallen by 48% from the 2007 peak, and are back to mid-2000 levels. However, the improvement in affordability is being offset by limited access to mortgage credit which will continue to weigh on prices. Transactional evidence suggests that prices the marginal purchases are occurring at prices which are already 60% below the peak. The official index continues to catch up on this."
- Thursday 01 March 2012