According to the latest survey from MyHome.ie, prices for both three and four bed semi-detached houses in Mayo continued to fall in the fourth quarter of 2012.
The survey found that the median price for a four-bed semi-detached house in Mayo fell 6.3 per cent in the fourth quarter to €150,000, representing an annual fall of more than 14 per cent. The fall in median prices for three-bed semis was less dramatic, down just over four per cent to €139,000 in the fourth quarter.
The rate of decline in property prices nationally accelerated somewhat in the last quarter of 2012 with prices falling by 2.9 per cent—compared with a decline of 2.2 per cent recorded in quarter three—to bring the annual rate of decline to 14.8 per cent.
According to the MyHome.ie survey the mix adjusted average house price nationally now stands at €201,000 down 51.5 per cent from the peak.
The author of the report, Caroline Kelleher from DKM Economic Consultants said 2012 had been a year of two halves for the property market: “While we saw relatively high house price declines in the first six months, this gave away to significant moderation in the rate of decline nationally in the latter half of the year and to price stabilisation in Dublin.”
Ms Kelleher said the outlook remains uncertain with further volatility in prices likely in 2013. “The disposable incomes of prospective buyers will be severely affected in the coming year by the measures announced in Budget 2013 - in particular the introduction of the property tax and the abolition of mortgage interest relief – and this will have a knock on effect on consumer confidence and the ability of individuals and couples to service a mortgage.”
Angela Keegan managing director of MyHome.ie said the moderation in the pace of decline, the increase in the number of transactions during 2012, and the establishment of the Property Price Register were all positives which could be built on. “The advent of the Property Price Register brought transparency to the market and we warmly welcome that development. The increase in transactions, especially cash transactions – they made up a staggering 46 per cent of transactions in the first nine months of the year – was also a notable development.
“However unless the impact of the Budget measures are offset by economic growth, increased employment, and a recovery in consumer confidence, the prospects of a recovery in the coming year could be problematic,” Ms Keegan added.