Further house-price falls expected

24/10/2009 - 08:41:08
Economists say there is little sign of a reversal in the fall in house prices. New figures out next week are expected to confirm the slump in the sector where prices have been in freefall since 2007.

Irish house prices have fallen by about a quarter since early 2007 and the Permanent TSB/ESRI survey out on Wednesday is expected to show a year-on-year reduction of about a sixth for September.

Meanwhile, figures on mortgage lending due on Friday next are expected to confirm the credit squeeze with most people saving rather than spending and the bank still tight on credit.

However, a consumer sentiment index also due on Friday will be closely examined for any optimism for the future following a slight rise in sentiment last month.