Asking prices continue to fall

THE trend of steady falls in asking prices has continued into the third quarter of 2011 with the latest figures from website MyHome.ie showing prices are down on average 42% from their peak level in 2006.

THE trend of steady falls in asking prices has continued into the third quarter of 2011 with the latest figures from website MyHome.ie showing prices are down on average 42% from their peak level in 2006.

Three bed semis in Kilkenny have an average asking price of €180,000 while four bed semis are guiding at an average of €220,000.

The author of the report, Annette Hughes, Director DKM Economic Consultants said cautious consumer sentiment is contributing to low housing activity levels, while the euro financial crisis is casting a shadow on economic prospects.

‘Although there was some positive economic news in the second quarter, Irish consumers remain cautious due to international and domestic concerns. On the one hand they are worried about the euro financial crisis and its impact on economic and employment growth prospects, while on the other they are concerned about household finances as well as continuing difficulties securing mortgage finance. But uncertainty around the contents of the forthcoming budget is the current big issue for households,’ he said.

According to the latest daft.ie housing report, also published this week the asking prices in the south-east Leinster counties of Kilkenny, Carlow and Wexford fell by 1.3% between June and September, compared to a fall of 4% in the second three months of 2011. The average asking price in Kilkenny in the third quarter of 2011 was €173,000, a fall of €161,000 from the peak in 2007.

Ronan Lyons, economist with Daft.ie said: “Conditions in the property market remain weak.

When prices started to fall, there were two issues the market had to deal with from the boom-time, over-construction and correcting the relationship between house prices and rents.

A third issue has now arisen - the lack of credit. Without a change in strategy by the banks, the outlook for house prices remains tough for the rest of the year, with a market of many sellers but few buyers able to borrow.”