CHARLIE TAYLOR and LAURA SLATTERY

NATIONAL HOUSE prices have on average fallen by 26.7 per cent since February 2007 and are now at October 2003 levels, according to the latest Permanent TSB/ESRI House Price Index.

Average house prices fell by 1.8 per cent in the month of October to €228,347. This compares with €261,573 in December and a peak of €311,078 in February 2007, when prices peaked.

“Despite the sharp drop in house prices, property still looks expensive by historical standards,” wrote analyst Ben May in a report, How Long Will Ireland’s Hangover Last?

The report says that “perhaps the biggest concern is that the main source of Ireland’s problems – the property market downturn – may have considerably further to run.

“We would not be surprised if house prices fell by at least another 25 per cent, bringing house prices back to 2001 levels,” Mr May said.

House prices down 26.7% to levels last seen in October 2003 - The Irish Times - Sat, Dec 05, 2009