House prices drop 1.1pc in July, extending two-year slump
House prices dropped again in July, extending a slump that has dragged prices to the lowest in more than five years.
Prices fell 1.1pc from the previous month and were down 12.5pc from a year earlier, Irish Life & Permanent (IL&P) said in a monthly report today. The annual drop is the biggest since the index began in 1996.
House prices have fallen in every month since May 2007 and are now 24pc below their peak in the early part of that year.
With unemployment rising and banks tightening lending conditions, demand for property remains weak.
Homebuilder McInerney Holdings Plc said today doesn’t see “any immediate improvement in market conditions.”
“The property market has remained sluggish through the summer,” said Niall O’Grady, business strategy manager at IL&P.
“Despite lower interest rates and improved affordability, customer confidence needs to improve before we can expect an increase in activity.”
The average price of a house in June was €238,828, down from a peak of €311,078, according to IL&P.
In Dublin prices have fallen 17.1pc in the last year to an average €312,822.