MyHome.ie NCB Property Barometer Q2 2008

 

MyHome.ie NCB Property Barometer Q2 2008Dublin, July 10th 2008: Property prices fall 1.5% in 3 months as 2 out of 5 buyers say they’ll buy within 12 months says MyHome.ie survey

Asking prices for residential property have dropped by one and a half per cent nationally over the last Quarter, according to the MyHome.ie NCB Property Barometer published today. The Barometer shows a significant variation in price drops across the country and for different property types. Asking prices for two bed apartments in south Dublin are down -5.1% while 3 bed semis are down -3.8% in Dublin West with 4 bed detached houses down -4.3% in the same area.

A MyHome.ie survey of buyers, based on a sample of more than 2,200 and published with the Property Barometer, reveals that 38% of buyers intend to purchase within the next 12 months. Falling prices is regarded as the most important factor affecting buyers’ decision to transact although the availability of suitable property remains the key factor for those trading up. 1 in 7 buyers surveyed have secured a mortgage while a further 1 in 8 are awaiting mortgage approval. While the majority of buyers who either have or are looking for a mortgage say they have the deposit available to buy a house, a significant 21% or more than a fifth say they do not have the funds to pay the deposit. This reflects the much tighter credit terms that are now available to home buyers.

The MyHome.ie NCB Barometer, based on an analysis of all properties advertised on MyHome.ie over the March to June period, shows that the falls in asking prices have still not matched the falls in actual sale prices which are officially reported at -10% over the last year but may be as high as -15% to -20% in some cases. Some further highlights of the Barometer findings include:

  • The stock of houses for sale continued to rise during the quarter with sales down about 21% on the same period last year
  • Asking prices for 3 bed semis are generally down with falls of -2.6% in Dublin,-3.2% in Kildare and Kilkenny, and -4.1% and-4.4% in Limerick and Westmeath respectively
  • The price trends for 2 bed apartments showed some variation with -5.1% decline in south Dublin against a +3.2% increase in north Dublin. This may be due to the less steep rise in price in the north city in previous years.

NCB economist, Eunan King, who provided the expert commentary for the Report said,
“While there is still a strong underlying demographic force driving the demand for accommodation, the near-term headwinds of higher interest rates, tighter credit and generally slower growth militate against a strengthening of the housing market until sometime next year.”

Commenting on the special buyers survey, Angela Keegan, COO of MyHome.ie said: “With 2 out of 5 buyers saying they intend to buy within the next 12 months, there is a strong underlying demand for property in the market. It is significant that 1 in 7 of those surveyed already have mortgage approval but, given that falling prices is quoted as the biggest factor affecting the buying decision, some are still holding back on purchasing in the current uncertain market.”

The Report includes a four-page, county-by-county guide providing details of price trends for the most popular property types on sale. Most counties show a drop in prices for most property types over the last quarter but there are some examples of price stability in certain counties.

The MyHome.ie NCB Property Barometer is compiled from asking price data collected from a quarterly snapshot of active, available properties for sale on MyHome.ie with an independent analysis of the data and commentary by NCB.

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