Daft.ie Q1 2010 - Asking prices fall by 3.4%


#1

"The report found that asking prices for residential property around the country fell by 3.4% during the first three months of 2010, the smallest quarterly fall in almost two years, according to the latest report published by property website Daft.ie. The national average asking price during March 2010 was €234,000, a total of €120,000 or 33% below the peak in 2007.

The fall in asking prices has again varied across the country. In Dublin, Wicklow, Waterford and Cork, price falls were in line with the national average of 3.4%, while prices were closer to static in other counties, including Sligo and Roscommon. In Galway city asking prices were hardest hit, falling by 8.8% in the first 3 months of the year.

The length of time properties remain on the market increased slightly in the first three months and nationally the average time to sell a property is now 10 months. However, this may be a sign that long-standing properties are shifting. By the start of April, of the 3,000 properties listed for sale in January, one in three was either sold or sale agreed. The percentage marked sale agreed is twice as high in Dublin, where price falls have been highest since the peak and the total stock for sale continues to fall steadily.

Read the full report, including a commentary by Brian Lucey, Associate Professor at TCD School of Business, at www.daft.ie/report.

Kind Regards,

The Daft Team"


#2

Thanks for the link. Nice to see that Galway city finally appears to be moving out of denial and asking prices are starting to get a reality check. Galway and in particular Salthill has been a bastion of denial for quite a while now.


#3

Nothing to write home about at all in terms of a recovery. This is an annualised rate of decline for 13.6%. Basically, destroying an amount of equity equivalent to the typical equity deposit in a 12 month period!!!

Also, looking at the monthly data, they fell faster in March than in January/Februrary!!

Last year, prices fell by 19% according to DAFT,


#4

Well, Lenihan thinks its a good time to buy…as does Eddie “buy my books” Hobbes


#5

:angry:

that means dont buy :slight_smile: need to use reverse psychology with these twats


#6

Heard about this on Newstalk this morning, they made a big deal of the fact that the decline was slowing. 3.4% a quarter, is still a big whack of money gone. E.g. house ‘value’ 300k, 3.4% = 10,200. Takes a while to save that type of money but not so long to lose it, it seems


#7

But the issue here is asking prices are all over the shop. We are looking at houses in SCD and we have seen vendors sell for 30%+ below asking in several cases…so the true market is already well below these asking prices. So when we apply forensic details like measuring quarter-on-quarter declines, you really have a statistical house of cards.

If only we had a reliable national sales register - everything would be so much clearer. A long wait for that one!


#8

I think it will be more interesting to see what happens with house prices in the second quarter. Given the recent .5% increase in interest rates and the anticipated impact of NAMA on future budgets in terms of almost certain increased tax rates, I fully expect house asking prices to continue falling and most likely at an increased rate.

People were already on a knife edge prior to the last increase and this will undoubtedly be the shape of things to come with interest rates heading upward irrespective of the influence of the ECB.


#9

The fact is that ECB rates and BOE rates no longer have much to do with the market rates paid by the man in the street.


#10

Do you think the “man on the street” will be unaffected by an ECB increase?


#11

Agree with nemesis. Interest rates are moving from emergency to more normal levels. Commodity prices are rising which will feed into European inflation. The omens are for rates to rise further, putting more downward pressure on house prices. Prices haven’t hit fair value yet, let alone “bottomed out”.


#12

Er, tell that to the man on the street who has a tracker mortgage…


#13

Didn’t Kevin Myers say on the LL that every employee in the state will be working one day a week to pay for the bail-outs; so knock another 20% off for that alone.


#14

Repossesion moratoriums will ensure that even if you cant afford the mortgage after a rate rise it will not mean a surge in sales. I presume there is still a moratorium on repossesions.


#15

That cannot go on forever.

The repossession moratorium is resulting in a cash bleed for banks, which has to be plugged by the taxpayer. They cannot keep it going, particularly as the dots get joined in the mainstream and people begin to realise that they are paying for all of this shit through higher taxes etc. There will be pressure on the government to stop ploughing cash into the banks, and at that point the banks will have to sink or swim, and they will swim, by hitting those who need to be hit.


#16

You forgot about deaf, Brian.


#17

Some weird stuff going on with 1-bed apartment pricing:

Dublin City Centre: 169k Wicklow: 209k Carlow: 169k Cork City: 206kThe only explanation I can think of is maybe a lot of the 1beds in Dublin city centre are bedsits?


#18

It’s not weird.

Dublin apartments are actually selling because they’re a vaguely sensible option for accommodation. In a falling market the number of transactions drives down the prices faster since sellers can see what price they move at.

Outside Dublin apartments are unlikely to shift at any price acceptable to developers so they remain high.

You can pretty much guarantee no one bed apartment is shifting in Wicklow at 209k.


#19

I mean that the man in the street is already paying a lot more than central bank rates.


#20

i think theres plenty of voices out there…