House prices in Cork remain stable

Asking prices for houses in Cork remained unchanged for the second
quarter in a row according to the latest survey by MyHome.ie

This means that the median or ‘middle price’ of a house in both the
City and County remains at €195K.

Further signs of price stabilisation also emerged in the annual
figures, with the annual rate of decline coming in at a modest 2%.

The price of 3 bed semis also remained stable at €175K. In fact Cork
was the only county in Munster where prices for this house type
remained unchanged. Meanwhile the price of 4 bed semis showed a small
increase, rising by 0.4% to €230K.

The survey shows that house prices in Dublin recorded annual growth –
of 1% -for the first time in 6 years.

Overall the mix adjusted asking price nationally declined by 1.9% in
Q2, to stand at €193K, down 53% from the peak in 2006.

The annual rate of decline is 8.6%. The corresponding figure this time
last year was 15%.

The author of the report, Caroline Kelleher from DKM Economic
Consultants said the findings suggested that the trough in the current
property cycle has been reached in Dublin.

“As well as showing modest annual growth in Dublin, these figures
indicate key markets such as Cork are likely to follow suit in the
near future. While nationally prices are continuing to fall, the rate
of decline continues to moderate. These signs are encouraging but
further improvements in the economy and employment will be needed to
sustain this and to see it spread to markets outside the capital” Ms
Kelleher said.

Angela Keegan, Managing Director of MyHome.ie described the latest
figures as very encouraging and said she believed the trend towards
price stabilisation would spread to other cities in coming months.

“We have consistently said that any recovery would happen first in
Dublin and it’s very positive to now see prices stabilising in Cork
and other counties like Kildare.

One issue in Dublin and some other urban areas is a shortage of stock.
In the capital stock levels are down a third in the last 12 months
although they are up 7.6% on Q1. Competition for properties is driving
prices in some parts of the city and an increase in the supply would
ensure affordability – which has improved dramatically in recent years
– remains at a reasonable level” Ms Keegan said.

The average time to sale agreed in Dublin and Galway is six months, in
Limerick it’s eight months while in Cork and Waterford it’s ten
months.

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