Latest property index shows signs that decline of Irish property market is slowing
The rate of decline in asking prices for residential property in Ireland eased during the first quarter of 2010 with values in Dublin rising, according to a new report.
The average asking price nationally fell by 3.3% in the first three months of 2010 compared with a fall of 3.5% in the last quarter of 2009 taking the average price for a home to €301,449, figures from the latest property barometer from leading Irish property website MyHome.ie.
Overall asking prices nationally have fallen 27.3% from their peak but Dublin is leading the recovery with prices rising in the south of the City by 1.1%, the report also shows. In Dublin asking prices fell by 3.9% bringing the total fall over the last 12 months to 15.2%.
Prices in the capital have now fallen by 33.4% since their peak in 2006 with the average asking price for a house in Dublin now at €355,657.
New homes recorded the largest drop in asking prices in quarter one, declining by 4.4%, the largest decrease on any of the MyHome.ie property barometer indices and means the average price of a new home now stands at €271,437.
The asking prices for second hand homes fell by 3.2%, the smallest amount of any sector covered. The average asking price for a second hand home is now €305,767 down from €422,990 or down 27.7% since the peak of the market.
Asking prices in Limerick remain the lowest of any urban area with the median price of a house in the city now standing at €240,000. In Cork the corresponding price is €289,500 while in Galway it is €275,000. In the three bed semi market the biggest falls were in Wexford and Westmeath, which both recorded falls of over 6% in the first quarter.
According to independent economist Paul Murgatroyd, the 3.3% the rate of decrease is significantly lower than the drop of 6.13% recorded over the same period in 2009. ‘Asking prices have continued to fall as do actual sales with plentiful anecdotal evidence showing peak to trough declines in sales prices in the order of 40 to 50% depending on property type and location,’ he said.
Angela Keegan, Managing Director of MyHome.ie said the three fold increase in sale agreed properties in Dublin compared to the same period last year was encouraging. ‘It is also interesting to note that three quarters of first time buyers are looking to purchase a second hand property while one in five is seeking a newly built home. Nearly half of first time buyers have a preference for a semi detached home while a further 10% prefer an apartment,’ she said.