Oct 1, 2009 - 09:00

MyHome.ie Property Barometer Q3 2009

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Rate of decrease in asking prices accelerates in Q3 when compared to Q2 2009
Asking Prices in Dublin fall back to late 2004 levels, declining 5.73% in Q3
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Summary of Asking Price Changes Q3 2009

National -4.27%
Dublin -5.73%Ex.
Dublin -3.4%
New Homes -3.56%
Second Hand - 4.39%
Dublin Asking prices now down 27.7% since Peak
National Asking prices down 22.01% since peak
Average Asking Price for a New Home falls below €300,000 level at €294,835 for the first time since 2005
Average Asking Price Nationally is €323,180 and is €385,993 in Dublin
Weak demand and fragile consumer confidence over the summer months contribute to falling prices
Impact of lower asking prices has reduced the selling time from 7 months to 6 months nationally since Q2 2009

The latest Property Barometer from Irelands leading property portal MyHome.ie, reveals that at a national level, the average asking price for property fell by 4.27% whilst there was an even greater fall in Dublin asking prices which were down 5.73% when compared to Q2 2009. The average asking price nationally now stands at €323,180 down 22% since the peak of the market whilst in Dublin the average figure is €385,993, a fall of 18.5% in the last 12 months and down 27.73% since the peak of the market. Asking Prices in the Dublin market are now at the same level as in 2004. Asking prices in the new and second hand markets are now down by 14% compared to twelve months ago.
The Barometer measures movements in asking prices across the five key segments of the market and also includes a county by county picture of asking price movements and the average asking price at a county level. In addition, the report contains a breakdown of asking price movements for the two most common property types in each county thereby positioning it as the most comprehensive guide to house prices across the country.
Commenting on the results, Economist Paul Murgatroyd said "the trend of a further stabilisation in prices did not materialise during the third quarter as the rate of decrease in asking prices accelerated once again. As a result it is clearly still too soon to call a bottom to the current market cycle although with interest rates remaining very low and prices continuing to fall affordability continues to improve".
He continued "Improved affordability alone cannot turn this market and the missing ingredient is confidence however there are tentative signs that consumer confidence is stabilising albeit at very low levels historically."
He further added "on a brighter note there now exists solid economic evidence that begins to point toward a stabilisation in the wider economy, with consumer spending leveling out after a period of steep decline, and the rate of growth in unemployment continuing to ease back. These are only small, but nonetheless
significant steps along the path to recovery which is now widely forecast to occur during 2010."
Angela Keegan, Managing Director at MyHome.ie added "The Barometer clearly shows that the market is still in favour of buyers at the current time but sales are still being achieved and property is still moving. The impact of lower asking prices has reduced the selling time from 7 months to 6 months nationally since Q2 2009. In addition we know that first time buyers are slowly gaining access to finance for property purchase which is encouraging although their outlook on the future remains extremely cautious at the present time. Hopefully as this year progresses and we move into 2010 sentiment will be underpinned by some more positive economic news, the availability of finance for the market generally will gradually become less restrictive and peoples' confidence in the economy and the property market will slowly be rebuilt".
The MyHome.ie Barometer is compiled from asking price data collected from a quarterly snapshot of active, available properties for sale on MyHome.ie. This data has been processed using best practice statistical techniques to produce a weighted average of the key indices.
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ENDS
Contact Details and Further information from:-
Paul Murgatroyd
Economist
Mobile: 0876998884
e-mail: paulmurgatroyd@gmail.com
Angela Keegan
Managing Director
MyHome.ie
mobile: 0862208148
e-mail: angela@myhome.ie