Two reports show fall in house prices

Two new reports out today show house prices have dipped considerably since the start of the year, especially in Dublin and Galway.

The study by MyHome.ie claims asking prices fell by four per cent during the first three months of 2011, and that the average national price now stands at €260,000.

A report by Daft.ie says house prices are down by just 3.1%, with the average asking price nationwide coming in at €210,000.

The property website also shows that sellers are waiting nine months on average to sell their home.

Ronan Lyons, economist with Daft.ie, signalled little change in the market with prices continuing to be pushed down.

“Prospective buyers find it difficult to get the finance, while owner-occupiers are often restricted by negative equity,” he said.

“As a result, the market is moving very slowly.

“Of the 3,000 properties posted for sale 15 months ago at the start of 2010, one in three is still for sale, although in Dublin the figure is closer to just one in six.”

Asking prices have fallen by 4.1% in Dublin since the start of the year and almost 5% in Galway.

In Cork and Waterford, prices have dropped by about 3%.

Limerick has seen falls of just 2%, while outside the main cities, asking prices are down by an average of 2.7%, the smallest fall in three years.

MyHome.ie said a steady decline in property prices looked set to continue this year.

The report’s author, Annette Hughes of DKM economic consultants, blamed unemployment, income falls, increases in the cost of living and difficulties accessing credit.

“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,” she said.