Sharp fall in asking prices for houses

ASKING prices in Kilkenny fell by 8.1% in the final three months of 2011, compared to a fall of 1.3% between June and September.

ASKING prices in Kilkenny fell by 8.1% in the final three months of 2011, compared to a fall of 1.3% between June and September.

The average asking price for homes in Kilkenny in late 2011 was €166,000, a fall of €167,000 from the peak in 2007.

Commenting on the report, Ronan Lyons, economist with Daft.ie said: “It is tempting to see larger house-price falls as a bad thing and no doubt many, particularly those in negative equity, will see this dramatic fall in those terms. However, if the size of the correction in house prices is determined by fundamental factors, then it is better for the prices to race to the finishing line than crawl there.”

Looking ahead to 2012, he said, “confidence and finance are central. It is vital to remember that recovery in the property market does not mean an increase in prices, it means an increase in transactions. This is ultimately down to the banks, who will not resume lending until the Government’s stress tests stop punishing them for doing so.”