House prices drop by 30%

THE spectre of negative equity is hanging over many homes in Fingal with news confirmed this week that house prices in the region had fallen by almost a third by the end of 2009. North County Dublin house prices fell by around 30% in 2009 and are down from the peak average prices in 2007, according to a survey from property website, Daft.ie. The national average asking price at the end of 2009 was € 242,000 – a fall of € 107,000 from the peak, according to the report.

The rate of decline in asking prices has varied across the country. In Dublin, asking prices have dropped by up to 42% - while in Cork, Galway and Waterford, asking prices fell by approximately 30%.

In Limerick,drops were on average 25%, while elsewhere in the country, prices are now on average 30% below their peak in early 2007.

In most parts of the country, the average time to sell a typical property now takes about nine months, while Dublin has fallen to four months.

Highlighting the link between price falls and movement on the market, Daft.ie economist Ronan Lyons said: 'Over the course of 2009, Dublin saw the largest fall in asking prices, as sellers adjusted to market conditions.

'At the same time, the total stock for sale in the capital fell by almost 20% over the year. In other parts of the country however, where there have been significantly smaller falls in asking prices, the number of properties available for sale is still rising.'

Asking prices in the capital fell 6.6% in the final quarter of the year, and are now down 35% on average.

Fingal has the smallest falls in the capital so far, with prices down on average 30%.

City centre prices fell heavily again in the final quarter and are now 42% below their peak on average.

In South Dublin, prices are down 37% on average since 2007. Commenting on the report, Alan McQuaid, economist with Bloxham Stockbrokers, said: 'Although houses have in general become more affordable in terms of price, this is of little comfort to potential purchasers if credit is still very tight.

'As such, it is therefore imperative that the country's banking system is put back on a sound footing as soon as possible. This must be the Government's main objective for 2010.'

Irish Independent