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Nine per cent drop in house prices

The average asking price in Donegal in the final quarter of 2010 was €155,000, a fall of €115,000 from the peak.
Asking prices for residential property around the country fell by an average of 5.1% . The average asking price in June was €196,000, a fall of 47% from the 2007 peak.

The price of a three bedroom house in Donegal is now €130,000 rising to €197,000 for a four bedroom and €230,000 for a five bedroom home.

In Ulster, asking prices in the second three months of 2011 fell sharply by 8.8% on average, having been largely static between January and March.

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In Dublin, asking prices fell by 5.7% over the past three months, and now the typical asking price is half of what it was during the peak in 2007. Cork, Galway and Limerick cities, also experienced similar drops in prices, falling between 5% and 6% over the same period, while Waterford city saw falls of almost 9% on average. Outside the main cities, many parts of the country – including Donegal, Cavan, Laois and Offaly – saw even steeper falls of up to 10%. The smallest falls, of less than 2%, were in Kerry and Mayo, which have seen in general some of the smallest falls from the peak.

Ronan Lyons, economist with Daft.ie said: “The second quarter of 2011 has seen one of the sharpest adjustments in prices since the correction started four years ago. With successful auctions of distressed properties at 60% or more below peak levels, the sharp fall may actually reflect increased realism on the part of sellers. Other factors are also important though.

One is the intense competition sellers face due to the high level of stock sitting on the market, especially outside Dublin. Another factor is that would-be buyers continue to face significant obstacles to obtaining a mortgage. Nonetheless, over half of properties posted for sale in Dublin at the start of the year are now sold or sale agreed.”

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