Asking Prices Hit Lowest Levels Since 2006
[9th July 2008] Asking prices for property are at their lowest level since May 2006, according to the latest report published by the property website Daft.ie. Prices have fallen across the country by an average of 7.9% over the past 12 months, bringing the national average house price down to €324,000.
The most severely affected counties are Monaghan and Sligo with drops of 11.8% and 12.8% respectively, while in Offaly, Louth and Cavan prices have fallen just under 10%. According to Ronan Lyons, economist with Daft.ie "In many areas we are seeing severe downward pressure on prices due to a surplus of housing stock for sale. As long as house sellers find themselves in such a crowded marketplace there will be continued pressure to reduce prices in order to attract buyers' attention".
The report also highlighted how many house sellers new to the market have unrealistic price expectations, listing their properties at higher prices than those already on the market. This trend is most pronounced in South county Dublin where newly-listed properties come on the market on average €60,000 higher than those already for sale in the area.
Fergal O'Brien, Senior economist, IBEC sees commuting distance as a key factor affecting house prices in the future. "With oil prices close to $150 a barrel and pump prices in Ireland hitting record highs, I suspect that many prospective and current property owners are reassessing the costs and benefits of long-term commuting. Falling house prices in commuter areas is likely to become more evident in Ireland over the coming years as economic and quality of life factors discourage long-term commuting trends."
The full report, containing an overview of regional trends and commentary by Fergal O'Brien, Senior economist, IBEC, is available online at www.daft.ie/report.
