Average price of new home: €265,000

Average price of second-hand home: €295,000

Down 10%

Projected change to Jan 2010: none

Price falls in Sligo town were relatively modest compared to the rest of the country, with the average property falling by just 10%. Estate agents say the two biggest factors affecting the market’s performance were the lack of available finance and poor consumer confidence.

There is hope that with more interest rate cuts on the horizon, mortgage repayments should become increasingly affordable, providing the credit squeeze is loosened. In certain cases, where property owners are eligible for both mortgage interest relief and rural renewal relief, mortgage repayments could end up cheaper than rental costs.

Last year 80% of purchases were by owner-occupiers, leaving a substantial proportion of investors still in the market, despite rental income falling by up to 20%.

Bungalows and detached properties on large sites on the outskirts of towns have managed to hold their value best.

Apartments and semis suffered the greatest fall in value. The prices of older developments also fell substantially.

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