The House Price Index, published by the ESRI and Permanent TSB, indicates that the biggest prices drops were in commuter counties surrounding Dublin.

House prices were down 16.8% in these regions in 2008.

  Permanent TSB says houses prices now are where they were in the middle of 2005 and it is thought houses prices in 2009 will fall by a further 10%.

It says the market will not recover until the economic situation in Ireland significantly improves.

David Duffy of the ESRI says that is unlikely to happen until 2010.

The fall in Dublin commuter counties was the largest fall recorded – with houses in Dublin down almost 12% and just over 10% for houses outside Dublin.

The national average house price for first time buyers was down 14% last year; that is more than double the decline seen in 2007.

Niall O’Grady of Permanent TSB says the last two years have seen a rate of decline as high as 17%.

He says that trend is likely to continue for at least the remainder of the year.

The Permanent TSB/ESRI index is based on actual transaction prices and not market valuations and other indicators.

The organisations say it is more reflective of the reality of the housing market.

New figures from property website Daft.ie show that house prices have fallen again.

It says the average price of a house is now €312,500, and that an average fall of 3.8% in house prices was recorded between July and September.

Prices are down by almost 11% compared to the same period last year.

Clare and Cork are the worst affected counties, prices in Clare have fallen by 7.8% and by 7% in Cork.

Prices in Roscommon, Tipperary and Leitrim dropped by more than 6%.

The website says the fall in property prices is closely related to the ongoing financial difficulties in the global economy.

Banks have less money to lend and the downturn is affecting confidence among people thinking of buying a house, it adds.