Read more: House prices in Ireland have slumped most in the world

According to property reports, from and Sherry Fitzgerald, the average price of a house in Ireland currently stands at $358,615. This is compared to $ 370,508 three months ago and $412,852 one year ago.

The average asking price in Dublin has fallen by 15.2 percent over the last 12 months. In total property prices in the capital have fallen by 41.2 since the peak period. Across the country prices fell by 13.1 percent on average in 2010.

Sherry Fitzgerald’s index reveals the average price for a second-hand property in Dublin fell by 4.6 percent at the end of the 2010. According to their index this brings the total drop in prices in 2010 to 11.6 percent.

Annette Hughes of DKM Economic Consultants, the author of the report  predicts that consumer sentiment will remain fragile in 2011.

She said "Although prices are back to 2002 levels it is clear we have not yet reached the bottom of the market. Confidence in the market remains weak as accessing credit remains difficult for some potential house buyers. Other issues which will continue to adversely impact the market include the amount of unsold and vacant housing stock and the precarious financial position of some households following the December budget combined with the need to repay debt."

She continued “There is undoubtedly an overhang of potential buyers waiting to enter the market when conditions improve and confidence is restored. The arguments supporting house purchases as a long term investment decision may once again win out, particularly in good locations.”

Read more: House prices in Ireland have slumped most in the world