Irish residential property asking prices are expected to fall by -10% in 2010, but should stabilise towards the end of the year as the economy is forecasted to exit the recession, according to property website MyHome.

Asking prices have fallen by -30.7% in Dublin and -24.77% nationally since their peak, with the average price in Dublin now at €370,137. The construction sector is forecast to build just 11,000 new private housing units in 2010 compared to 90,000 units in 2006 , with the possibility of just 6,000 new private housing starts.

Paul Murgatroyd, economic consultant to MyHome, said: “This year has the potential to be better for the residential market, relative to 2009, and asking prices are likely to fall a further -10% this year but the rate of decline will ease compared to last year and as the year progresses some sectors of the market will begin to show signs of stabilising.”

Three bedroom semi-detached homes in Dublin will be the first to show signs of stabilisation, and the apartment sector will be one of the last to do so because of an overhang of supply and weak demand. However, low interest rates and the fresh credit to be provided by Dublins "bad bank" project, the National Asset Management Agency, should encourage buyers to re-enter the market.

Angela Keegan, managing director of MyHome, said: “Last year will be long remembered as the worst year in the Irish residential property market but things will improve in the year ahead. Already this year we have noticed a marked increase in active sales leads to estate agents via our website when compared to the autumn, and it is reassuring that potential purchasers are actively searching for property so early in the year”.