Of course its the sale price rather than asking price that matters but to say that asking prices are completely irrelevant would be incorrect in my opinion.
I don’t see how a sale 6% below asking price can be viewed as anything but incrementally positive. Incrementally not majorly. Imagine how you’d be moaning if the price rises had increased and the inflated asking price has held or sold above asking (as we saw through last year). It shows that sentiment is turning. As a regular pinster, i’m sure you’re aware that the consesnus is that we’re stating to see property prices roll and move lower, I would say its erroneous to suggest that they have fallen off a cliff however.
As a caveat, I don’t own property in either area but like it or not, considering just the North, Malahide and Clontarf have sustainably commanded a premium for a number of tangible and intangible reasons. The bottom line being that most would conclude that there are far worse places to raise kids and still be in touching distance of Dublin city centre. In light of this, its unlikely that you’re going to see Malahide or Clontarf semi-d’s lead the charge to lower prices and “value”.
They will however follow in due course if the downward pressures remain over the coming months (pick you reason - CB rules, “no value”, repossessions, inventory, sentiment etc…). In my personal opinion, houses in the €500-800k price range are the ones that are really going to be hit.
If you’re comparing prices and market conditions to this time last year, I don’t think there’s any comparison. There’s no rush to “buy now” and the froth has massively been taken out. The autumn selling season will be extremely telling and may be the catalyst for a significant 5% correction in prices, alternatively, we may continue to see stock build throughout the remainder of the year with the correction not coming until 1H 2016. The question being, is this a flatlining/-5% event or start of another downward cycle that will see prices down 25% or so over the next 24-months.
I’m hoping for the latter, as someone sitting on the sidelines looking to buy, but its going to be a case of waiting and seeing. All the indicators, such as Seabury coming in below asking, or the Foxfield properties in Raheny, or a series of properties in Clontarf. Value; not really but improving!