Almost four out of five estate agents expect no improvement in the housing market over the next year, according to a report published today.
The NCB quarterly residential property survey found difficulties securing mortgage approval, particularly for first time buyers and a "stand-off" between sellers and buyers on property valuations had contributed to a sharp drop in the number of sales.
It notes that rising interest rates - the ECB lifted interest rates by 0.25 per cent to 4.25 per cent earlier this month - has seen the mortgage component of the consumer price index rise by over 17 per cent over the last 12 months.
Rising interest rates and falling prices means that buyers are slow to enter the market.
According to 60 per cent of those agents surveyed, the number of viewings was lower between April to June than the first quarter of the year, and 77 per cent said the volume of sales was lower.
Asking prices have continued to fall in the second quarter, with 85 per cent of agents reporting reductions, although there were indications that the rate of price decreases may be decelerating.
Almost two-thirds of respondents said the mark-down in the price was 10 per cent quarter on quarter with the remainder seeing the asking price drop by 11 per cent or more.
The NCB report was compiled from 47 responses from 185 surveyed estate agents. The average number of employees per respondent firm was 14.
