House Prices Fall 19% During 2009
Asking prices for residential property around the country fell by 19% during 2009 and are now more than 30% below their peak levels of early 2007, according to the latest report published by property website Daft.ie. The national average asking price at the end of 2009 was €242,000 – a fall of €107,000 from the peak.
The rate of decline in asking prices has varied across the country. In Dublin, asking prices have dropped by up to 42% – while in Cork, Galway and Waterford, asking prices fell by approximately 30%. In Limerick, drops were on average 25%, while elsewhere in the country, prices are now on average 30% below their peak in early 2007. In most parts of the country, the average time to sell a typical property now takes about 9 months, while Dublin has fallen to four months.
Highlighting the link between price falls and movement on the market, Daft.ie economist Ronan Lyons said: “Over the course of 2009, Dublin saw the largest fall in asking prices, as sellers adjusted to market conditions. At the same time, the total stock for sale in the capital fell by almost 20% over the year. In other parts of the country however, where there have been significantly smaller falls in asking prices, the number of properties available for sale is still rising.”
Tipperary and Munster
House price falls accelerated in Munster in the final three months of the year, with prices falling 6%, compared to falls in previous quarters of around 4%. The average price of a house in Tipperary in the final quarter of the year was just over €200,000, down from a peak of over €265,000 in 2007.
Commenting on the report, Alan McQuaid, economist with Bloxham Stockbrokers, said: “Although houses have in general become more affordable in terms of price, this is of little comfort to potential purchasers if credit is still very tight. As such, it is therefore imperative that the country’s banking system is put back on a sound footing as soon as possible. This must be the Government’s main objective for 2010.”
For further information please contact:
Ronan Lyons (086 604 5655, 01 421 8700), Daft.ie – firstname.lastname@example.org