Figures released today by Permanent TSB have shown a 3.3 per cent dip in house prices. The property consultants CB Richard Ellis have said prices may continue to fall; however there will be no crash.

The company are confident that the new homes sector, which experienced a decline of just below two per cent, is less exposed to the price declines that are being experienced in the second-hand market.

"We continue to hold the view that what is currently being experienced in the Irish new homes sector is a temporary correction phase, similar to that experienced in Ireland in 1998 and again in 2001," Marie Hunt, Director of Research at CB Richard Ellis, said.

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"We believe that our recent assertion that sentiment would improve and that activity in the new homes sector would pick up pace during the autumn selling season will be proved correct over the coming weeks."

She continued: "We are not suggesting that activity will rebound to the extraordinary levels experienced over the last number of years, but we believe that a resumption to a steady sustainable level of new homes sales activity is certainly achievable on the basis that buyers will regain confidence now that interest rates appear close to their peak and there is growing evidence that construction levels are easing."

CB Richard Ellis are encouraged by the fact that over 30 units at Adamstown Square sold on the opening weekend, while Hooke and McDonald sold 58 units at their launch in Ashbourne last weekend.

The Department of the Environment have also stated that 77,000 housing units will de delivered in Ireland this year.

(JM)