A report by estate agent Douglas Newman Good has shown that second hand house prices in Dublin fell by 2% in the fourth quarter of last year.
For 2001 as a whole, prices of second hand houses dropped by 3.5%, the first annual fall recorded by the company's House Price Gauge.
In its annual review, Douglas Newman Good says prices rose in the first quarter, but began to fall in Q2. It says the falls reflected a continued lack of consumer confidence and uncertainty about the timing of an improvement in the economic outlook.
'It seems increasingly likely that a market crash or hard landing has been avoided,' says DNG economist Paul Murgatroyd.
The company says the outlook for 2002 is 'broadly positive' as a result of the boost to the residential property market given by recent Budget measures.
Mr Murgatroyd says house price increases of 3% to 5% are likely this year. He warns first time buyers that they will face stiffer competition from investors. 'Potential purchasers who delayed buying in the second half of last year in anticipation of further price falls will have to consider their position carefully,' he warns.
The DNG review also predicts that property along the LUAS line A (Tallaght to City Centre) in Dublin could increase by up to 15% in value.
