A new report shows that house prices fell by almost 10% in the 12 months to August, knocking almost €30,000 off the value of the average home in that time.
According to the figures, compiled by Permanent TSB and the ESRI, house prices fell by 0.9% in August from July, leaving prices down 6% in the first eight months of the year. August's fall was much bigger than the 0.2% recorded in July.
For the past 12 months, prices are down 9.9%, with the average falling to €270,493 from €300,375 a year earlier.
Permanent TSB's Niall O'Grady said the very low rate of decline in July was 'clearly an aberration' and August had re-established the trend of the previous few months.
A breakdown showed that house prices in Dublin fell by 0.8% in August, while the fall elsewhere was 1.3%. House prices in the commuter counties around Dublin fell by 0.8% and are down 7.8% so far this year.
Prices of new homes fell 0.4% in the month, while second-hand prices were down 1%. New house prices have fallen by 6.6% this year.
For first-time buyers, house prices were 1.2% lower in August than July, while the fall for second-time buyers was 0.9%.
The index is based on an analysis of Permanent TSB's monthly mortgage sales.
HOUSE COMPLETIONS CONTINUE TO FALL
Meanwhile, figures from the Department of the Environment show that the number of houses built in the first eight months of the year continues to fall compared to last year.
The number of house completions in August dipped to 3,605 - bringing the total for the first eight months of 2008 to 35,714.
The figures show that total completions in the first six months of 2008 stood at 27,736 units, almost 29% below the same time last year.
Commenting on the figures, National Irish Bank's chief economist Ronnie O'Toole said that much of the house building that it taking place in Ireland is either once-off housing or is building by the public sector.
He says that only 1,900 private houses were started in July, compared to almost 7,000 in July of 2005. The economist says that this points to an even weaker housing activity next year than this year.
'With a stock of unsold housing still holding the market down, a pick-up in activity is not going to take place any time soon', he added.
