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House Prices

House prices down 3.2 per cent… or 3.5 per cent, depending on which report you read

Daft.ie and MyHome.ie have released their latest figured for house prices in the third quarter of the year…

THE DAFT.IE HOUSE price report for the third quarter of the year shows that asking prices fell by an average of 3.5 per cent between June and September. In the second quarter the average price drop was 5 per cent.

In 2007 the average asking price for a house was €366,000. That figure is now €195,000. Dublin house prices are now 55 per cent below the peak in some parts of the city. Asking prices in Dublin fell by an average of 4.5 per cent in the third quarter.

In Cork and Waterford cities the fall was up to five per cent, while in Limerick city average prices fell by eight per cent in the last three months.

Prices in some parts of the country went in the opposite direction, with Galway city seeing a rise of just over one per cent. However prices in Galway are still 18 per cent below peak levels.

Ronan Lyons, chief economist with Daft.ie said that one of the major issues facing the property market is the lack of credit. He said that without a change in strategy by the banks, the outlook remains tough for the rest of the year.

It was reported in yesterday’s Sunday Independent that the government is preparing to present the Keane report, which will recommend that banks will write of mortgage debt for some borrowers in difficulty.

MyHome.ie quarterly report
MyHome.ie has also released its quarterly report for the summer months, revealing a slightly different figure of 3.2 per cent in terms of the decline in average asking prices.

The property website said that the average national house price is now €241,000, down from €249,000 three months ago.

Cork city’s price decline is put at 5.9 per cent, while the report said that Galway saw a fall of three percent.

Author of the report Annette Hughes, director at DKM Economic Consultants said that the low housing activity levels are indicative of cautious consumer sentiment.

She also said that uncertainty about the contents of the forthcoming budget is a big issue for people. She also pointed to difficulties in securing credit from the banks.

Angela Keegan of MyHome.ie said that it is vital to address the issue of securing mortgage finance.

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