New figures show that the average house price dropped by almost €50,000 last year, a fall of 18.5%.
The house price index compiled by Permanent TSB and the ESRI shows that falls in prices accelerated as the year went on, with a drop of 3.6% in December alone.
The 18.5% fall in 2009 compares with a fall of 9.1% in 2008. At the end of last year, the average price was €213,183, compared with €261,573 at the end of 2008. The index shows that prices have fallen by 31.5% since the peak in February 2007.
Permanent TSB's Niall O'Grady described 2009 as a 'horrendous' year for the housing market, due to 'shattered' confidence, oversupply and a weakening economy. He said an 8.5% fall in prices in the last quarter of the year was more than twice as big as the drop any other quarter since prices started falling.
Dublin house prices fell by 4.3% in December, with prices elsewhere down 2.5%. For 2009, the drops for Dublin and outside Dublin were 20.6% and 15.3% respectively.
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.
