Asking prices for houses have declined 15 per cent during the year to the end of March, according to a survey by NCB Stockbrokers and property website MyHome.ie published today.
In the first three months of 2008 asking prices declined 1.4 per cent. This follows a fall of 0.2 per cent in the previous three-month period.
Eunan King, economist with NCB said the Property Barometer indicated that house prices nationally are now 3 per cent below their peak in 2006 and noted that there was evidence that the rate of decline was starting to accelerate.
Mr King also said it was likely that asking prices will fall further before the "market has fully adjusted to the change in the balance in supply and demand".
He added that actual sale prices were below asking prices and said this gap was growing.
According to the report the number of houses advertised for sale doubled in 2007 compared to 2006, although it added that some of this supply – particularly in parts of north and south Dublin – has started to clear in the first quarter.
Asking prices for houses outside Dublin fell more sharply, dropping 4.3 per cent to an average of €361,398. In the capital house prices fell 0.25 per cent in the first quarter to an average of €511,382.
One area that rising against the trend is Lucan, in Co Dublin where asking prices rose 3.6 per cent in the first quarter.
The report also notes that mortgage repayments as a proportion of overall household income are also declining, leading to an improvement in affordability.
However, against this is a growing trend among mortgage lenders to tighten the lending requirements for first-time buyers.
Today, The Irish Times reported that Bank of Scotland Ireland is no longer offering mortgages for more than 90 per cent of the value of houses being purchased by owner occupiers.
It has reduced new debt to value ratio to 80 per cent, as has the ratio for would-be buy to let customers.
The bank had been offering 95 per cent mortgages in all categories up to Tuesday, as well as 100 per cent mortgages in certain circumstances.
MyHome.ie is owned by the Irish Times Group.