Sellers expect up to €35k less than asking price

SELLERS are expecting as much as €35,000 less than their original asking prices for their homes this year.

Real estate website Daft.ie said in its review of last year’s housing market that sellers are now expecting 5% to 10% less than their asking price, with the average asking price of a property in Ireland now standing at €353,000.

While asking prices remained largely static last year, closing prices consistently fell, changing the market from a seller’s to a buyer’s market. This shift, combined with general uncertainty in the market, led to a large build up in the stock of property available for sale, which peaked in September.

Last year asking prices nationally were static in year-on-year terms, just 0.4% higher than the previous year, according to the report.

In Dublin, asking prices are 1.7% higher than a year ago, whereas in Dublin’s commuter counties prices remain static.

The average asking price for a property in Dublin is €449,226, while for the other cities the average asking prices stand at: Cork, €378,562; Limerick, €259,243; Waterford, €278,353 and Galway, €328,726.

Driven by a surge in properties coming on to the market early last year, the stock of properties for sale in Munster increased 64% during the year. The increases in stock were highest in Limerick and Waterford cities, where stock more than doubled.

Asking prices in Munster’s three cities remain between 5% and 8% higher.

Director at the Economic and Social Research Institute (ESRI), Frances Ruane said: “Firstly, to the extent that the recent changes in stamp duty are seen as reducing uncertainty, they should lead to increased confidence.

“Secondly, while economic growth rates will be lower than in previous years, they are not low relative to the rest of the EU, and taken with the growth in the population seeking housing should have a positive effect on demand.”

Threats of increases in the ECB rate have not gone away, and this will lead buyers to be cautious. “Furthermore, buyers may be affected by banks tightening their credit. The behaviour of builders and developers in releasing stock for sale will also be important in certain parts of the market.

The Daft house price report is based on an analysis of the full database of properties posted for advertisement on Daft.ie, up to January 1, 2008.