Asking prices go on falling

Average asking prices for homes fell by 1.5 per cent in the past three months – but are still ahead of selling prices, writes ORNA MULCAHY, Property Editor.

AS THE property downturn continues, asking prices for homes across the country continue to fall but the rate of decline has eased in the second quarter, according to property website myhome.ie.

Average asking prices have fallen nationally by 1.5 per cent in the last three months, compared to a fall of 6.1 per cent during the first quarter of 2009 according to the latest report from the property portal published today.

In Dublin, asking prices fell by 2.3 per cent in Q2, compared to 7.4 per cent in Q1, according to the survey which found that in the year to June, average asking prices have declined by 14.66 per cent nationally, and by 17.8 per cent in Dublin over the same period.

Myhome.ie now puts the average asking price nationally at €337,603, while in Dublin it is €409,448. These figures are well ahead of average sale prices recorded in the latest Permanent TSB/ESRI house price index, published last week.

It shows that the average paid for a house nationally in May 2009 was €245,295, while in Dublin the average price paid was €323,973. This would indicate that asking prices still have some way to fall to meet what buyers are willing to pay.

Currently myhome.ie has around 60,000 properties for sale. “Overall stock levels have remained fairly consistent over the last 12 months,” says managing director Angela Keegan. “However, we are seeing a fall-off in supply in Dublin with the actual number of second-hand properties for sale in Dublin down by around circa 15 per cent. There is a marked fall off in stock in some established neighbourhoods.”

Seven months is the average time it takes to sell a property, according to Keegan, who says that they plan to monitor the trend throughout the year.

The myhome.ie barometer is compiled from asking price data collected from a quarterly active snapshot of available properties on the website. Commenting on the results, property economist Paul Murgatroyd said that the myhome.ie barometer “quantifies the weakness that the Irish residential market has seen over the last 12 months. The results are in line with the weakness that the economy as a whole has displayed in that period.”