While temperatures failed to rise noticeably during the summer months property prices in Galway city were climbing gradually with a one per cent rise recorded.
According to figures released this week by property website Daft.ie the small rise in property prices in Galway city took place during the summer months, however, current prices are still 18 per cent lower than they were a year ago.
While Galway city experienced this slight rise in prices, nationally residential property fell by an average of 3.5 per cent between June and September. This compares to a fall of just over five per cent between March and June. Daft.ie maintain that the average asking price is now just under €195,000, a dramatic fall from the average price tag of €366,000 recorded during the peak four years ago.
While average property prices fell by 4.5 per cent in Dublin, by five per cent in both Cork and Waterford, and by eight per cent in Limerick during the past three months, Galway city rose by just over one per cent. The average asking price in the city by the third quarter of 2011 is €218,000, a fall of €177,000 from peak levels in 2007. Prices in the rest of Galway county are €170,000 on average, representing a fall of €138,000 from the peak, while asking prices throughout the Connacht region fell by an average of 2.7 per cent between June and September, about half the fall of 5.6 per cent seen in the second quarter of 2011.
Commenting on the latest figures, Daft.ie economist Ronan Lyons 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, that was 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.”