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House prices set for further fall

Bloomberg News
House prices set for further fall - Ireland - house prices - housing crisis

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."

Ireland's economy shrank about 7.5 per cent last year, almost twice the euro-region average. Gross domestic product may shrink 0.8 per cent in 2010, marking a third annual contraction, the survey showed.

The survey indicated that unemployment could rise further, from 11.8 per cent in 2009 to 13 per cent this year.

"It's going to be a tough one," Mark Bourke, chief executive officer of Dublin-based IFG Group Plc, said in Dublin yesterday. "There's very little to indicate there will be a major recovery."


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