Cork house prices down 30% since peak

Property prices fell 3.9% in the third quarter, bringing the fall for the year to date to 11%, according to the latest Property Barometer issued by leading property website, MyHome.ie.

The latest fall brings the total decline from the peak of the market in late 2006 to almost 32.4%.

The median price of a house in Cork is now €265K down 3.6% in the last 3 months. Cork has performed reasonably well in comparison to Limerick and Galway on a 12 month basis, declining by 11.4% over that time. Overall prices in Cork are down 30% since the peak of the market four years ago

In Dublin, asking prices overall fell by 4.3% bringing the total fall over the last 12 months to just under 16%. Prices in the capital have now fallen by 39% since their peak.

The survey shows the price of a three bed semi in Cork is down 4.26% to €225K while the price of a four bed seme has fallen by a similar amount to €296K. Apartments continue to remain out of favour with buyers with the biggest falls in Cork being recorded in the two bed market. Those apartments are down by over 5% to €233K while one bed apartments are down by 2.6% to €212K.

According to the survey the prices for new homes fell by 1.9%, less than half the fall recorded by second hand homes which fell by 4.3%. In both previous quarters new homes fell by substantially more than second hand homes.

The average price of a new home now stands at €255K while that of a second hand home is €283.

The author of the report, Jean Goggin, an economic consultant with DKM Economic Consultants said that the data suggests that the property price decline in 2010 is unlikely to exceed the magnitude of decline experienced in 2009 but that we will have to see an improvement in the labour market and the general economy before the property market picks up.

‘Last year the overall decline was 14.5% and so far this year the annual decline is 13%. While this suggests some improvement in property market conditions it is clear that we have not yet reached the bottom of the market. However 2011 is likely to bring some improvement in the general economic climate which should boost consumer confidence and provide more certainty to households regarding employment and incomes. We could then see a modest improvement in some segments of the market’ Goggin said.

Angela Keegan, Managing Director of MyHome.ie said the survey showed prices were continuing to decline, albeit at a lower rate compared to the same period last year.

‘It was interesting to note that the price of new homes fell at half the rate of second hand homes and this levelling in prices may be due to sizable price reductions sellers made to new homes earlier this year. The sharp price falls recorded in many of the capital’s commuter counties such as Wicklow, Meath and Kildare are not surprising given the rapid increase in unemployment and its implications for housing demand in these areas’ she said.

‘We know there are buyers out there, a lot of them with mortgage approval, but until consumer sentiment improves they will continue to stay on the sidelines. For now all eyes will be on the budget. The good news for anyone contemplating buying a home is that properties have never been as affordable’ Keegan concluded.

The MyHome.ie survey now includes price information for 1 and 2 bed apartments as well as 3 and 4 bed semi detached houses and is available at www.MyHome.ie

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