House prices plunge since peak, report finds

House prices have fallen a third since the peak, two property reports revealed today.

The daft.ie survey, which records a large number of asking prices right across the country, put the average down 37% to €195,000.

But its rival MyHome.ie, which is heavily weighted in favour of the Dublin market, put the average down 32.4% to €280,000.

Both however agreed that the crash has not bottomed out.

Ronan Lyons, economist with Daft.ie, said a lack of confidence and finance were pushing prices down.

“My judgment on why house prices are falling has not changed,” he said.

“So much property available on the supply side, and on the demand side they don’t have the confidence and if they do they don’t have the finance.”

“Because of that it is unlikely we will see a recovery in house prices any time soon.”

Jean Goggin, from DKM Economic Consultants who helped compile the MyHome report, said prices will only stop falling once the unemployment crisis eases and the economy turns around.

She said prices fell 14.5% last year and 13% over the last nine months.

“While this suggests some improvement in property market conditions it is clear that we have not yet reached the bottom of the market,” she said.

“However 2011 is likely to bring some improvement in the general economic climate which should boost consumer confidence and provide more certainty to households regarding employment and incomes.

“We could then see a modest improvement in some segments of the market.”

Daft.ie said according to its website activity it was taking 8.4 months to sell a home, down from 9.1 months since the start of the year.

MyHome.ie said the average asking price for a home has fallen €11,000 in the last three months, down from €291,000. The average house price was €323,000 a year ago.

Angela Keegan, MyHome.ie managing director, said prices were falling at a lower rate now than in the same period last year.

“We know there are buyers out there, a lot of them with mortgage approval, but until consumer sentiment improves they will continue to stay on the sidelines,” Ms Keegan said.

“For now all eyes will be on the budget. The good news for anyone contemplating buying a home is that properties have never been as affordable.”

Daft.ie said asking prices in Dublin fell 3.3% in the last three months, 1.5% in Cork and Waterford while Galway and Limerick were largely static.

Outside the main cities, asking prices fell by an average of 4.3%, Daft.ie said.

MyHome.ie reported asking prices in Dublin down by 4.3% – a 16% fall in the last year and down 39% since the Spring 2006 peak. Average asking prices in the capital now stand at €325,000.

In Cork average prices fell by 3.6% to €265,000; Limerick city recorded a drop of 3.4% compared to 7.3% in the last quarter; and Galway, which has seen the biggest falls of any of the cities, saw its average down to €255,000 after a 3.7% fall.

The property survey found new home asking prices down by 1.9% compared to 4.3% for second hand homes.

MyHome.ie said in the two reports from the first six months of the year new homes fell by substantially more than second hand homes.