The rate of decline in house prices slowed slightly last month, according to the latest Permanent TSB/ESRI House Price Index published today.
The average price for a home across the State dropped 1.1 per cent in November compared to 1.3 per cent in October.
The average price paid for a house last month was €292,124, compared to €310,409 in November last year. Measured since the start of the year, the decline was 6 per cent, or 5.9 per cent for the past 12 months.
House prices in Dublin fell by just 0.1 per cent compared to a decline of 0.8 per cent outside the capital. Over the first 11 months of the year, prices were down by 5.6 per cent and 5.4 per cent respectively.
The average price paid for a house in Dublin €403,233 and €251,839 outside the capital.
In the commuter counties of Louth, Meath, Kildare and Wicklow, prices declined by 0.5 per cent on average last month compared to 0.1 per cent in October equating to a 6.5 per cent drop year on year. The average price was €323,853 in November.
The figures show that three-bedroom semi-detached houses rose by 0.4 per cent in November 2007, equating to a fall of 2.6 per cent this year.
Minister for Finance Brian Cowen reformed stamp duty in the Budget two weeks ago in an effort to assist first-time buyers and stimulate activity among those changing homes.
Although the reforms will not have directly influenced today's figures, analysts predicted potential buyers would wait to see what effect they would have.
"While the picture differs from sector to sector, the reality is that demand is sluggish, and potential purchasers appear to be delaying their decisions while the market settles," said Niall O'Grady of Permanent TSB.
He added that increasing rents indicate "a significant pool of potential purchasers waiting for the right time to purchase".
Bank of Ireland chief economist Dr Dan McLaughlin said there were signs of untapped demand in the market.
In the bank's quarterly Irish Property Reviewpublished this afternoon, Dr McLaughlin said buyers appeared to be holding off because of concerns for the economy and the cost of homes.
Dr McLaughlin said: "Affordability looks set to improve for the average borrower; incomes will rise and the rate cycle appears to have peaked."
Commenting on projections in the review which shows mortgage lending likely to drop by around €5.5 billion to €34.5 billion, Dr McLaughlin said the building sector had responded promptly completing 10,000 fewer units this year compared to last.
He estimated there would be 20,000 fewer homes built next year - 30,000 off the record 88,000 completions in 2006.