The Irish property market continued its decline in Q3 as the country’s economic forecast looks bleak.

Reports of the decline vary, with MyHome.ie reporting it as 3.2 per cent and Daft.ie claiming it is 3.5 per cent.

The news comes as Ireland’s central bank lowered its economic growth forecast for next year from 2.1 per cent to 1.8 per cent as consumer spending falls and exports slow in the wake of the Eurozone crisis.

MyHome.ie claim that house prices in Ireland nationally have fallen 42 per cent from their peak, now averaging €241,000, whereas Daft.ie puts the fall at 47 per cent to an average at €195,000.

While the figures may differ, the consensus is that prices will continue to fall.

‘Conditions in the property market remain weak,’ said Ronan Lyons, an economist with Daft.

‘Without a change in strategy by the banks, the outlook for house prices remains tough for the rest of the year, with a market of many sellers but few buyers able to borrow.’

Lyons claims that prices in Dublin won’t start to stabilise until the second half of 2012, with prices elsewhere likely to take longer.

He added that, of the homeowners who bought their properties during the Celtic Tiger boom years, between 200,000 and 320,000 are now in negative equity.

Annette Hughes, author of the MyHome report, claimed that consumers remained cautious despite promising economic views in Q2.

‘The euro financial crisis is casting a shadow on economic prospects,’ she said.

Despite the positive views in Q2, and the upgrading of this year’s growth forecast from 0.8 per cent to 1 per cent, Ireland’s central bank expects that a ‘more muted outlook’ on exports continuing into next year will hamper the country’s recovery.