Irish property market shifts from seller to buyer

According to a report released by property website Daft.ie, the housing market of Ireland has changed from a seller's market to a buyer's market.

The latest report put out by Daft.ie says that houses placed on the market had reduced actual closing prices throughout 2007. Homeowner continued to place houses on the market at standard asking prices, with no notice of change there. What has changes is the price at closing, which has slipped rather than increase.

Daft.ie claims in the report that the market is swiftly changing from a seller's market to a buyers market, fuelled by the dip in housing prices across the continent.

Until recently, houses on the market consistently show an increase of 5 to 10 per cent more than the original seller's asking price. In 2007, the trend changed to the current situation where seller's can expect to receive offers 5 to 10 per cent below the asking price.

According to Ronan Lyons who serves as economist at Daft.ie, "Daft.ie's figures show that asking prices were static in 2007, while the ESRI/permanent tsb index shows that closing prices fell steadily throughout the year."

The report implies, though, that sellers are resisting selling for offers below the asking price throughout the last 12 month period.

This information is based also on the lower than expected growth in the housing market. In Dublin, prices grew by 1.7 per cent in comparison to the previous year. The national average currently for a property is €353,000, while in Dublin prices stand higher at €449,226, on average. Nationally, prices on property were static, at a 0.4 per cent increase.

Adding to the situation is a drop in the stock of for sale houses which grew in total some 62 per cent in 2007. A recent drop in the stock shows that sellers are giving in and selling to lower offers than their asking price.