Property prices continued to decline in Q3

Property prices continued to decline in Q3

Property prices continued to decline in Q3According to the latest quarterly report from MyHome.ie property prices continued to decline in Q3 with asking prices down 3.9% nationally and down 4.3% in Dublin. Although property prices continued to journey on a downward slope over the quarter the pace of decline has eased when compared to the same period last year. Not only that but it is now apparent that the property price decline in 2010 is unlikely to exceed the scale of the decline experienced in 2009.

Highlights from the report showed that new builds fared best in the quarter as properties in the Dublin commuter belt, such as Wicklow, Kildare, Meath experienced bigger price falls during Q3.

Jean Goggin from DKM Economic Consultants and an author of the MyHome.ie Q3 Property Barometer said; “While the data suggests some improvement in property market conditions it is clear that we have not yet reached the bottom of the market… 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.”

The average asking price for a home nationally is now €280K compared to €291K three months ago and €323K twelve months ago.

There are 5 comments for this article
  1. Elka at 1:03 pm

    Given that these numbers are based on ASKING prices, all it takes is one eedjit to put his house on the market at a gazillion Euro to throw/inflate the asking price in an area – in other words, basing any thinking on this kind of information is tenuous at best!

  2. Finbarr O’Meara at 10:15 am

    I see conflicting reports as to the rate of property price decline from different sources every day. Myhome.ie website ascertains that property prices have fallen by close to 11% as of the third quarter of this year (year on year decline). Other reports state that the year-on-year decline is around 7.9%.
    It is difficult to get a clear picture of the true nature of the decline when the figures available to the “person on the street” are so conflicting. I do not see how given the current bleak economic outlook, with banks reluctant to finance buyers, that house prices can go any way but down. There are 15 Billion reasons to support my argument according to the proposed savings the government intend to make over the next four years. My outlook is defined as follows: house prices will continue to fall until stability is returned to the exchequer; hopefully in four years time.
    In case you have doubts, here is a sensible argument explained in simplistic terms.
    1. Less money in people’s pockets means less money saved and less money available to service expensive mortgage loans.
    2. More taxes on incomes means less money in people’s pockets.
    3. Less spending means more taxes necessary to service government debt; even less money in people’s pockets; even less money to service mortgage repayments.
    4. More properties on the market. I predict the figure for Dublin alone to jump to 7,000 by February of next year.
    5. More properties on the market, house prices drop further.

    Q.E.D.

  3. james at 2:04 pm

    Less Banks = More life

  4. james at 2:02 pm

    We have been looking to buy in Ireland since July.

    We started negotiations on two properties but we have pulled back because of that hideous bank bailout, on top of the already groggy financial situation within Ireland in particular.

    We have been advised by our bank that prices will probably fall for the next 5 years at least and then only a weak recovery in 2017.

    As we are not looking to make a profit(retirement) we will probably take a chance but we do have cold feet right now.

    We had to ask the question(WHY BAILOUT A LOST CAUSE)!!!???

  5. Paul Browne at 1:16 pm

    I’m surprised the averages are still that high. Two people earning the average industrial wage would still have to bend the rules to afford an ‘average’ priced house……crazy. Long may it fall……

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