Residential Property Asking prices fall 3.5% in the third quarter of 2011
Asking prices fall 3.5% in the third quarter of 2011
Asking prices for residential property around the country fell by an average of 3.5% between June and September, according to the latest report published by property website Daft.ie. This compares to a fall of just over 5% between March and June. The average asking price is now just under €195,000, compared to €366,000 at the 2007 peak.
In Dublin, asking prices fell by an average of 4.5% over the past 3 months, with prices now 55% below the peak in some parts of the city. Asking prices in Cork and Waterford cities fell by up to 5%. In Limerick city, which has seen some of the smallest falls from the peak, prices fell by over 8% in three months. In contrast, asking prices in Galway city actually rose by just over 1% over the summer, although they are still 18% lower than a year ago. Outside the main cities, asking prices also rose noticeably in Carlow and in Monaghan, but on average fell by just under 3% between June and September.
Laois & West Leinster
In the West Leinster counties of Laois, Westmeath, Offaly and Longford, asking prices fell by 4.6% between June and September, compared to a fall of 7.1% in the second three months of 2011. The average asking price in Offaly in the third quarter of 2011 was €156,000, a fall of €157,000 from the peak in 2007.
Ronan Lyons, economist with Daft.ie said: “Conditions in the property market remain weak. When prices started to fall, there were two issues the market had to deal with from the boom-time, over-construction and correcting the relationship between house prices and rents. A third issue has now arisen – the lack of credit. 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.”
The full report is available from http://www.daft.ie/report and includes a commentary by Sheila O’Flanagan, author and former bond trader.
For further information please contact:
Ronan Lyons (086 604 5655), Daft.ie – media@daft.ie