Irish house prices may fall for a fourth year in 2010 as the recession persists, a survey of economists said.

Home prices will shrink 9 per cent, according to the median of six estimates in a Bloomberg News survey. Prices have already fallen 27 per cent from their peak in early 2007, based on a monthly index by Irish Life and Permanent.

"The economy is contracting, there's still housing oversupply there," said Dermot O'Leary, chief economist at Goodbody Stockbrokers.
"It's hard to say we've reached a floor."

Minister for Finance Brian Lenihan is facing a widening budget deficit and is cutting the wages of government workers and welfare payments.
The actions won't be enough to reduce the gap this year, according to the survey. Economists see the deficit averaging 11.6 per cent of GDP in 2010, little changed from 2009's 11.7 per cent.

House prices set for further fall - The Irish Times - Tue, Jan 05, 2010