House prices down 2.7% in quarter, but up over year

THE price of local housing dropped during the last quarter of 2008.

Figures released by the Policy Council yesterday show the average price for the quarter from October to December was £342,000.

That was down by 2.7% on the previous quarter, but still an increase of 3.3% over the year.

The last quarterly drop was -1.8% in the first quarter of 2008.

The increase at the end of 2006 was 11.1% up, and at the end of 2007 stood at 6.6%.

Keith Enevoldsen (pictured), a director at Martel Maides, said a downward trend in year-on-year prices was likely to continue.

'Annual house price inflation is decreasing and has been for the last three quarters. It is coming down fast,' he said.

Overall sales were down by 37% on the previous year - 163 local and 13 open market homes were sold during the three months - compared to 257 local and 13 open market properties sold over 2007.