THE price of the average house dropped by just 1.7pc in the last three months giving a 35pc drop in all since the peak at the end of 2006.
Prices are now at the same levels as the end of 2002, according to figures released in the latest permanent tsb/ESRI House Price Index.
The drop in the three months from April to June of this year is the lowest quarterly reduction since the same period in 2008.
In the first quarter of this year, prices reduced by 4.8pc which followed a drop of 3.9pc for the last three months of 2009.
Over the first six months of this year, prices have been cut by a total of 6.4pc which compared to 8.1pc for the same period last year.
At the moment the average price for a house across the country is €201,364 compared with €242,593 for the same time last year.
This is a fall from a peak of €311,078
Dublin house prices fell by 3.5pc in April to June of this year compared to a drop of 10.3pc between January and March and 7.5pc in the last three months of 2009.
The overall drop in the first six months of this year was 13.5pc compared to 12.2pc for the same period in 2009.
The average price for a Dublin house between April and June this year was €242,000, compared with €250,872 between January and March.
Commenting on the figures, Niall O' Grady, General Manager with permanent tsb said: "While prices continue to fall at different levels in Dublin versus the rest of the country, this reduction in Quarter 2 is the lowest recorded quarterly fall in almost two years.
"This may indicate that prices are starting to find a more sustainable level after almost three and a half years of decline"
The price of a house outside Dublin fell by just 0.8pc in the three months to June.
This means that houses outside the capital are costing about €181,820 in June of this year compared to €183,309 in March.