House prices are continuing to fall but the rate of decline is moderating according to the latest figures from leading property website MyHome.ie.
In the second quarter mix-adjusted property prices nationally fell 3.2% – down from over 7% in Q1. The annual rate of decline was 15%.
Looking at property types, the data on 3 bed semi-detached properties is encouraging with median asking prices nationally unchanged in the quarter at €185,000.
In Dublin mix-adjusted prices declined by 4.7% in the second quarter while the annual rate of decline in the capital was 17.6%. However, the author of the report, Annette Hughes, Director DKM Economic Consultants said that despite the fall in mix-adjusted prices in Dublin there are positive developments in some sub-markets.
“It is heartening to see some areas and house types record price increases, given that we are in the middle of the sixth year of falling prices. For example Dublin City North and South and Dublin County North recorded increases of over 2% while the price of 3 bed semis rose by 0.4%. House prices in other parts of the city may also be stabilising but this may not be fully reflected in the figures due to the fact that apartments make up 20% of the Dublin stock and the prices of one and two-bed apartments continue to record the largest falls amongst all property types across the county” Hughes said.
Asking prices nationally are now down by 49% compared to the peak – Q4 2006 – while Dublin prices are down 56% over the same period.
Based on average mix-adjusted asking prices, the average price for a home nationally is now €212K as opposed to €219K three months ago. In Dublin the corresponding figures are €236K versus €248K.
Once again new houses saw the smallest price fall, down 1.2%, with the average price of a new house now standing at €220K. The average price of a second hand home is €213K, down 3.2%, the same as for all properties across the State.
However, overall, Annette Hughes said that despite small pockets of price growth and stabilisation in some micro markets, mainly in Dublin – the overall property picture remained depressed.
“Another interesting element is the close tracking which has occurred since 2003 between MyHome.ie’s data – which measures asking prices – and data from the CSO – which measures transaction prices. According to MyHome.ie prices are down 49% from peak nationally and by 56% in Dublin. The corresponding figures from the CSO are 50% and 57%” Hughes said.
Angela Keegan Managing Director of MyHome.ie said the fact average time to sale agreed were shortening in most parts of the country was encouraging.
“Average time to sale agreed is now down from 6 months to 5 in Dublin, is 6 months in the rest of Leinster and is down from 10 to seven and a half in Munster. That is a move in the right direction” Keegan said.
The median price of a property in Cork city fell by 4.8% to €200K from €210K. The corresponding figure in Galway city is €197 down 8% while the corresponding price in Limerick city is €165K down 3% and €170K in Waterford down just 0.6%.
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Note to Editor
Asking prices versus transaction prices
During the boom period when prices (and incomes) were rising and the number of buyers exceeded the number of sellers, transactions prices would have been significantly higher than asking prices, whereas now in recessionary times, asking prices are typically what vendors aspire to. As the market has adjusted downwards over the past four years and transactions have plummeted, asking prices have also had to adjust downwards. In today’s market characterised by oversupply in some locations and a lack of mortgage finance, transactions prices tend to be below asking prices as what buyers are willing to pay or can afford is much lower now than during the boom years. The gap should narrow, however, as sellers become more realistic and as the demand/supply balance is addressed.