The latest quarterly house price report released by MyHome.ie earlier this week showed that asking prices declined by 4.1% nationally and by 3.8% in Dublin in the quarter. Median asking prices for a 3-bed semi around the country are now at €179,000, which is equivalent to around 5 times average earnings, and counties Longford and Westmeath recorded the lowest asking price for a 3-bed semi at €149,000.
It is clear that 2010 was a very challenging year for the property market and Ireland’s economy, and author of the report, Annette Hughes, Director DKM Economic Consultants said further price reductions are likely over the course of 2011. Nevertheless, for anyone contemplating buying a home, properties have never been more affordable. Property prices are now nearly half the price of what they were at the peak of the market in 2006 with better value emerging across all property types.
On the flip side, for those contemplating buying a home in 2011 there are numerous hurdles to face including, difficulties in accessing credit, the changes to stamp duty, the concern over further mortgage interest rate hikes pushing up the cost of living and talks of the abolition of Mortgage Interest Relief in the future.
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- The Irish Market: Are current property prices affordable?