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House prices in Ireland fell by 18.5 per cent in 2009, the latest Permanent TSB/ESRI House Price Index showed today.
This is a steeper decline than in 2008, when average prices fell 9.1 per cent for the year.
Prices have now fallen 31.5 per cent from their peak in February 2007.
The cost of housing fell 3.6 per cent in December, picking up pace from previous months when prices fell 3.1 per cent in November and 1.8 per cent in October.
Permanent TSB's general manager in business strategy Niall O'Grady said 2009 was a "horrendous year", blaming a lack of confidence, significant oversupply and a weakening economy for the decline.
"The pessimist will say there's worse to come. The optimist will argue that affordability has improved so much that things will stabilise soon. But the realist will admit we'll have to wait and see," he said.
The average price for a house throughout the State was €213,183 in December 2009, compared with €261,573 in the same month a year earlier and down from the peak of €311,078 in February 2007.
Houses in Dublin were hit hardest by the weak market, with prices falling 4.3 per cent in December and 20.6 per cent for the year. This compares with a decline of 2.5 per cent in the same month and 15.3 per cent in the year for houses outside the capital.
