Foros de la Plataforma por una Vivienda Digna

[billy]

House prices for first time buyers in Ireland have fallen by 1.1% in 2007

Irish secondhand house prices fell 1.1% in the first quarter of 2007 compared with a 7.6% rise in the corresponding period last year, figures published Monday by the country's largest estate agent show.

Ireland's house prices currently average more than EUR311,000 nationally, with the average price for first-time buyers more than EUR279,000, according to the latest data released by the ESRI.

Estate agent Sherry Fitzgerald - which has 120 branches nationwide - said that its figures show prices in Dublin fell 2.3% in the first quarter compared with an 11.2% rise for the corresponding period last year.

It said secondhand prices rose 18.1% in 2006 compared with a rise of 23.3% in 2005; most economists expect single-digit price growth this year for both secondhand and new houses. Sherry Fitzgerald said house prices have moderated, but are "stable."

Sherry FitzGerald's chief economist, Marian Finnegan, added that:

"the results of the company's barometer largely reflect the impact of a reduction in consumer confidence in the performance of the market."

Finnegan cited an anticipation of a stamp duty abolition in last December's budget, which never materialized, a stronger than usual stock of secondhand properties available on the market and rising interest rates.

This follows a report last week by the independent think-tank Economic & Social Research Institute that said Ireland's house prices are overvalued by around 15% and warned that speculators may start pulling out.

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=4564&cat=44-0-0