Dublin, April 17th 2008: Buyers Market Takes Hold as Asking Prices Fall Further says MyHome.ie NCB Property Barometer
- -1.4% national decrease in January to March 2008
- 3 bed semis in dublin commuter belt among the highest falls at -3.4%
- Falls in Asking Prices still substantially less than falls in Sale Prices
- Report Downloads:
Asking prices for residential property have dropped by almost 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 downwards acceleration in asking prices compared with previous periods as sellers adjust to the realism of the property market.
The MyHome.ie NCB Barometer, based on an analysis of all properties advertised on MyHome.ie over the period, shows a variation across property types and regions with the sharpest price drops (-3.4%) for 3 bed semi-detached houses in the Dublin commuter belt in the first 3 months of the year. Other key results of the Property Barometer are:
- The stock of houses for sale continued to rise during the quarter
- Sales levels are down about a third compared to a year ago but there are signs of improved sales activity in certain areas
- The fall in actual sale prices continues to exceed the drop in asking prices. While sale price indices report an 8% to 9% drop over the last year, the real fall in prices is more of the order of 15% according to MyHome.ie market intelligence. The discrepancy arises due to the lag in reporting sale prices as there is a delay of 2 months or more from closing a sale to signing contracts and a further time delay in feeding those prices into a house price index.
Commenting on the results, Jim Miley, Chief Executive of MyHome.ie said: “This latest Barometer Report indicates that sellers are becoming more realistic in their price demands as reflected by the fall in asking prices. The average length of time to sell a house is now just under 180 days compared with in excess of 210 days at the end of last year. Well priced property, both new and second hand, is attracting buyers with increased transaction levels reported.”
NCB economist, Eunan King who provided the expert commentary for the Report said, “Asking prices are beginning to fall somewhat faster in Q1. This is welcome in that it helps the market adjust to the new supply and demand situation. However sales price declines continue to outpace those of asking prices, suggesting that asking prices may have more to run to the downside.”
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 3 bed semis in the last quarter with the sharpest fall of -4.1% in Wicklow. Prices for 4 bed detached houses dropped by as much as -6% in Offaly and -5.7% in north Dublin.
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.