New figures show that the fall in house prices accelerated in May. The house price index, compiled by Permanent TSB and the ESRI, shows that average prices fell by 1.2% from April.
This followed a 1.1% drop in April and brought the annual drop to 9.5%. Prices have now fallen by 4.4% in the first five months of this year.
The average price paid for a house in May was €275,176, almost €13,000 lower than the average at the end of 2007.
Permanent TSB's Niall O'Grady said a combination of higher mortgage rates and weaker confidence in the economy was increasing uncertainty about the property market and reducing demand.
Dublin house prices fell by 1.6% in the month, while houses outside Dublin were down 0.8%. The fall in the commuter counties around Dublin was 0.9%.
Prices for first-time and second-time buyers showed falls of 1.2% and 1.5% respectively. New house prices were 1.7% lower, while second-hand houses dropped by 1.5%.
