HOUSE PRICES fell by 7.2 per cent in the first quarter of 2012, the fastest rate of decline in three years, according to figures from property website MyHome.ie

However, first-quarter figures released by Daft.iefound that prices fell by 1.4 per cent during the same period, compared to 8 per cent in the last three months of 2011, suggesting a stabilisation in the market.

The discrepancy reflects the different sets of data used by each provider. While MyHome.iebases its research on all the properties available on its website, Daft.ieonly uses properties that have been listed for the first time during the period in question, or have changed their asking price.

According to MyHome.ie, asking prices nationally are 47 per cent lower than at the peak in the last quarter of 2006, while Dublin prices are down 54 per cent over the same period.

Both sets of data showed significant regional variations.

While noting that the median asking price nationally for a three-bed semi-detached house is now €185,000, Angela Keegan, managing director of MyHome.ie, said "micro markets" were beginning to emerge.

“The price of three-bed semis in Dublin actually rose by 1.6 per cent to €259,000 in the first quarter, while they fell by 20 per cent to €120,000 in Laois.”

She said potential buyers would have to weigh up the value of the increased mortgage relief measures against further predicted price falls.

According to Daft.ie, the average asking price for residential property in Dublin and Galway city centres rose by 4 per cent and 2.3 per cent respectively.

Prices in all other city centres were down, including Cork which fell by 5 per cent, Waterford which was down by 7 per cent, and Limerick which fell by 1 per cent.

Elsewhere in the country, prices fell by an average of 2.2 per cent.

According to Annette Hughes, director of DKM Economic Consultants which produced the MyHome.iereport, recent reports suggest house prices look set to fall by a further 10 to 15 per cent.

“With prices falling by around 2 per cent per month, this implies another six to seven months of falling prices before possibly stabilising in the second half of the year. However, any move towards price stability in the latter half of 2012 will need to be accompanied by a recovery in the jobs market, the prospects for which are very weak over the coming months,” Ms Hughes said.

Ronan Lyons, economist with Daft.ie, said that while the latest figures from Daft suggest a stabilisation in house prices, it is unlikely that prices will stabilise nationally until there is a substantial increase in activity, which itself will require mortgage lending by banks.

He noted that the total number of properties available for sale on Daft.iewas 54,000, the lowest in four years. "This, coupled with an increase in the number of properties selling within four months – rising from 30 per cent in December to 33 per cent in March – suggests evidence of increased activity in the market."