Asking prices for property in both Galway city and county have continued to fall in the second quarter of the year although the fall in prices was more pronounced in the county, according to the latest survey from property website MyHome.ie.
The survey shows the median asking price in the city fell 2.2% in the quarter to €175,000 while in the county; the fall in prices was 5.4% also to €175,000.
The asking price for a three-bed semi in Galway fell in the second quarter of the year by almost 2.3% to €156,250, almost half the asking price at the 2006 peak. The median price of a 4-bed semi was unchanged in the quarter at €185,000 – a fall of just over 5% in the past year.
Asking prices for houses in Dublin have grown by 1% year on year according to the t survey. It’s the first time annual growth has been recorded for house prices in the capital in six years. In Cork, prices remained stable for the second successive quarter. Asking prices for houses nationally fell by 1.9% in the second quarter to stand at €193,000, a fall of 53% from the peak.
The author of the report, Caroline Kelleher from DKM Economic Consultants said the findings suggested that the trough in the current property cycle has been reached in Dublin.
“As well as showing modest annual growth in Dublin, these figures indicate key markets such as Cork are likely to follow suit in the near future. While nationally prices are continuing to fall, the rate of decline continues to moderate. These signs are encouraging but further improvements in the economy and employment will be needed to sustain this and to see it spread to markets outside the capital” Ms Kelleher said.
Angela Keegan, Managing Director of MyHome.ie described the latest figures as very encouraging and said she believed the trend towards price stabilisation would spread to other cities in coming months. “We have consistently said that any recovery would happen first in Dublin and it’s very positive to now see prices stabilising in Cork and other counties like Kildare.
“One issue in Dublin and some other urban areas is a shortage of stock. In the capital stock levels are down a third in the last 12 months although they are up 7.6% on Q1. Competition for properties is driving prices in some parts of the city and an increase in the supply would ensure affordability - which has improved dramatically in recent years - remains at a reasonable level,” Ms Keegan said.
