Prices of new homes have reduced by 40% on average representing the bottom of the market, according to the Irish Home Builders’ Association (IHBA) Property Market Review and Outlook 2009.

The Review and Outlook also suggests the level of unsold housing stock is being exaggerated and that in fact the number of unsold houses in Dublin and the Greater Dublin Area represents less than eight months supply in more normalised market conditions. The Report indicates that nationally the supply of new houses averages one year’s supply, though there is a significant regional dimension in this figure. Nationally the level of unsold new housing stock is estimated to be between 35,000 and 40,000 units with approximately 9,000 unsold new homes in Dublin.

Pointing to the likely regional dimension in the housing market’s recovery, IHBA Chairman Dominic Doheny added: “The period since 2006 has been marked by a distinct geography in terms of house building activity, with output at its lowest in the built up urban areas and highest in the north midlands, west and border counties. This is the clearest indication that there will be a strong regional dimension in Ireland’s housing market recovery”. Concluding, the IHBA Chairman commented: It is evident from this analysis that we are likely to see the emergence of a number of regional as opposed to one national housing market, with local circumstances, including existing housing overhang, population and economic factors determining the pace of recovery”.