New figures show that the average house price fell by more than €22,000 in the first seven months of this year.
The house price index, compiled by Permanent TSB and the ESRI, fell by 1.1% in July, bringing the drop over the previous 12 months to 12.5%. The annual drop in June was 11.7%.
In the first seven months of the year, house prices fell by 8.7%, bringing the average price in July to €238,828. The figure was €261,573 at the end of December last year.
Permanent TSB's Niall O'Grady said the property market had remained sluggish throughout the summer, with low levels of activity. He said that despite lower interest rates and improved affordability, consumer confidence in the property market needed to pick up before there could be any increase in activity.
The index shows that house prices in Dublin fell by 2.2% in July, while the fall was 1.2% for houses outside Dublin. New house prices were down 0.1% in the month, while prices of existing houses fell by 1.5%.
House prices for first-time buyers dropped 0.9% in July, while prices for second-time buyers were down 1.1%.
The survey is based on the agreed sale price and is calculated using figures from mortgage drawdowns. The index is a three-month moving average. The compilers point out that there may be a time lag between the time the sale price is agreed and when the mortgage is drawn down.
