HOUSE PRICES ‘DOWN 50% SINCE BOOM’ IN IRELAND

[Interesting article from http://uk.news.yahoo.com written by the Press Association – Tue 03 January 2012.
Do you believe the numbers those reports have revealed? Have you experienced this yourself?
Please leave your comment at the bottom of the article]

House prices have fallen by around 50% since the peak of the housing boom, two reports have revealed.

Daft.ie said asking prices for residential properties fell by an average of 7.7% in the last three months of 2011 and 18% over the year.

And MyHome.ie said its prices dropped by 2.4% in the last quarter and by 13% over the last 12 months.

But both maintained people are paying just half of what was forked out at the end of 2006 and in 2007.

Daft.ie said the average asking price is now just over 175,000 euro, 52% below its 2007 peak of 366,000 euro.

Ronan Lyons, economist with Daft.ie, said: “It is tempting to see larger house price falls as a bad thing and no doubt many, particularly those in negative equity, will see this dramatic fall in those terms.

“However, if the size of the correction in house prices is determined by fundamental factors, then it is better for the prices to race to the finishing line than crawl there.”

Author of the MyHome.ie report, Annette Hughes of DKM Economic Consultants, found asking prices nationally are now down by 43% to 236,000 euro compared to the end of 2006, while Dublin prices are down 50% over the same period – to 268,000 euro.

She said the economy remains in a fragile position and that the prospects for economic growth in 2012 remain uncertain.

“House prices will not stabilise until we have a period of sustained economic and employment growth,” Ms Hughes warned.