Property owners looking to sell their homes have dropped asking prices by a fifth in the last year, according to the latest Daft housing survey.
The survey found average prices have dropped 19 per cent to €263,000 in the last 12 months and are down a quarter on the peak in spring 2007.
Dublin city centre has borne the brunt of the crash with prices down 11 per cent in the last three months alone.
The survey, which looks at 12,000 properties, also found homes are on the market for an average of seven months compared to just six weeks during the boom.
Ronan Lyons, economist with Daft.ie, said sellers have to be realistic if they want a deal.
“The large price drops we have seen in Dublin over the past year appear to have had an effect on the level of transactions in the capital,” Mr Lyons said.
“Over the past three months, the percentage of properties coming off the market in Dublin has risen steadily, suggesting that if properties are priced correctly, they will sell.” The daft survey said asking prices have dropped to levels last seen in February 2005.
A separate survey by online firm Myhome.ie last week suggested the fall in property values was beginning to ease with average asking prices down to €337,603.
Unlike Daft which noted the increasing pace of house price falls, Myhome claimed the rate of decline was significantly easing.
Daft said asking prices fell 5.7% in the second quarter of 2009, significantly more than the first three months and in line with the falls in late 2008.
Oliver Gilvarry, Dolmen Stockbrokers head of research, warned the pressure on the property market will continue this year and into early next year.
“With further tax increases likely this year, uncertainty over a property tax and civil servants facing further hits to their pay, buyers will remain in the background until they begin to see certainty on what their take home pay and employment prospects are like,” Mr Gilvarry said.
Dolmen warned over the dangers of negative equity - when homeowners owe more than their house is worth - claiming it will tie people to unsuitable housing.
“To paraphrase (Oscar) Wilde, to create one property bubble is unfortunate, to allow a second could only be carelessness,” Mr Gilvarry said.