Apr 5, 2011 - 08:49

MyHome.ie Property Barometer Q1 2011

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Asking prices decline 4% in Q1 2011
The average asking price nationally is now €260K and €302K in Dublin
Prices for 1 bed apartments falling €5K every three months
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The steady decline in asking prices looks set to continue into 2011 according to the latest Property Barometer issued by leading property website, MyHome.ie.
In quarter one average mix adjusted asking prices fell by 4.1% nationally and 3.8% in Dublin. While the annual rate of decline remains in double digits in the capital – the prices are 15.1% lower in year on year terms – this represents the lowest annual rate of decline in Dublin since Q4 2008.
The latest fall brings the total decline from the peak of the market in late 2006 to 37% nationally and over 43% in Dublin.
Based on average mix-adjusted asking prices, the average price for a home nationally is now €260K and €302K in Dublin. The respective figures 12 months ago were €301K and €356K.
The author of the report, Annette Hughes, Director DKM Economic Consultants said further price reductions are likely over the course of 2011. ‘Weak employment figures, falls in income, increases in the cost of living and difficulties accessing credit are all key factors dampening activity levels in the housing market. It remains to be seen if the recent bank recapitalisation measures will ultimately get credit flowing again while an impending interest rate increase is likely to keep the housing market depressed for quite some time yet” Hughes said.
However she pointed out that some green shoots have begun to emerge. “The moderating pace of price decline in Dublin is to be welcomed as is the fact that affordability continues to improve. The median asking price for a 3-bed semi ranges from €149K in Longford to €285K in Dublin. The national figure is now €179K which is equivalent to around 5 times average earnings” Hughes said.
According to the figures the average time for a property to go sale agreed is now 3 months in Dublin, 5 months in Leinster, 7 months in Munster and 13 months in Connaught/Ulster. The latter region also has four of the top five counties with the highest vacant stock.
The Managing Director of MyHome.ie, Angela Keegan said the figures indicate 2011 is going to be another challenging year for the property sector.
“While the stamp duty changes have attracted trader uppers back into the market, first time buyers face some difficult choices. They will have to weigh up the fact that prices may fall further with changes in mortgage interest relief which it appears now will be introduced at the end of the year. For someone looking to get on the property ladder an apartment might be an option. Prices for 1-bed apartments have been falling by around €5K a quarter and the median price nationally is now €160K ” Keegan said
Keegan also pointed out that prices were not falling everywhere. “Prices actually rose by 2.7% in Dublin City South while in South and West Dublin the fall was only 0.3% and 0.4% respectively. While Dublin has the fastest sale agreed time at 3 months with over 7,000 second hand homes available, it remains a buyers’ market” she concluded.
The survey shows that overall the prices for new homes fell by slightly less than second hand homes, 3.8% as against 4.1%. The average price of a new home now stands at €237K while that of a second hand home is €263K.
While prices in Galway city fell by the national average, in Cork city and Limerick city they fell by 2% and 2.5% respectively.
The median asking price in Cork is now €245K, in Galway its €239K while in Limerick its €195K.
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