Dramatic fall in Galway property prices since peak, says myhome.ie survey

Galway city has experienced the most dramatic fall in property prices since the peak of market four years ago with a 43 per cent decline, the latest figures from myhome.ie has revealed.

The results of the Property Barometer released by the property website, myhome.ie, yesterday shows that property prices fell nationally by 3.9 per cent in the third quarter, bringing the total fall so far this year to 11 per cent. The total decline nationally from the peak of the market in late 2006 is now almost 32.4 per cent.

Since the property bubble burst Galway city has experienced the most dramatic fall recorded compared to other cities with 43 per cent, according to myhome.ie In Dublin the figure is 39 per cent while in Limerick it is less than 25 per cent.

The Property Barometer shows that average asking prices in Galway city continued to decline steadily, down another €10,000 this quarter to reach €255,000. Prices in the city are now down 12 per cent since this time last year. Four years ago, at the peak of the property market, the average asking price of a house had been €450,000.

The survey shows that the price of a three-bed semi in Cork is down 2.2 per cent to €220,000 while the price of a four bed semi has remained steady at €255,000. Apartments continue to remain out of favour with buyers all over the country and Galway is no exception. The average price of a one bed apartment is now €183,000, down 3.5 per cent in the last quarter, while two bed apartments fared better declining by just under one per cent at €246,000.

According to the survey the prices for new homes nationally fell by 1.9 per cent, less than half the fall recorded by second hand homes which fell by 4.3 per cent. The average price of a new home now stands at €255,000 while that of a second hand home is €283,000.

Author of the report, Jean Goggin, of DKM economic consultants, said the data suggests that the property decline in 2010 is unlikely to exceed the magnitute of decline experienced last year. However she added that an improvement of the labour market and in the general economy is needed before the property market picks up.

“Last year the overall decline was 14.5 per cent and so far this year the annual decline is 13 per cent. 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 customer confidence and provide more certainty to households regarding employment and incomes. We could then see a modest improvement in some segments of the market,” she said.

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