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House prices 'plunge by a third'

House prices have fallen a third since the peak, a property report has revealed.

And experts examining the latest data for the website MyHome.ie warned the market has not yet bottomed out.

Asking prices dropped 3.9% towards the end of summer with the average cost for a home down to 280,000 euro.

Jean Goggin, from DKM Economic Consultants, said prices will only stop falling once the unemployment crisis eases and the economy turns around.

She said prices fell 14.5% last year and 13% over the last nine months.

"While this suggests some improvement in property market conditions it is clear that we have not yet reached the bottom of the market," she said.

"However 2011 is likely to bring some improvement in the general economic climate which should boost consumer confidence and provide more certainty to households regarding employment and incomes.

"We could then see a modest improvement in some segments of the market."

MyHome.ie said the average asking price for a home has fallen 11,000 euro in the last three months, down from 291,000 euro. The average house price was 323,000 euro a year ago.

Angela Keegan, MyHome.ie managing director, said prices were falling at a lower rate now than in the same period last year.

PA Media