There was a drop of 10 per cent in the average price of houses in Galway city by the final quarter of 2012, according to a report by an online property website.
The 2012 In Review report, released by Daft.ie, shows that average prices in other cities like Cork and Limerick also fell by approximately 10 per cent showing that there was a smaller drop in price in these areas compared to other cities, outside of Dublin, such as Waterford which experienced a fall of 17 per cent. Asking prices in Dublin, during the last three months of last year, were just two per cent lower than a year previously. Outside the cities prices were 13.3 per cent lower than a year previously during the same period.
In Galway city the average price is down 10.1 per cent to €163,230 and down 19.2 per cent in Galway county to €137,659. A further analysis shows that in Galway city the average asking price for a one bedroom property is €84,690, €103,327 for a two bed property, €132,060 for a three bed, €174,438 for a four bed, and €208,851 for a five bed. In Galway county the average asking prices are: €58,374 for a one bed, €66,227 for a two bed, €86,333 for a three bed, €120,059 for a four bed, and €129,058 for a five bed property.
Asking prices in Connacht and Ulster were 19.6 per cent lower in the final quarter of 2012 than a year previously. In contrast, in late 2011, the year-on-year fall in prices was 13.6 per cent. Similarly, transactions recorded on propertypriceregister.ie in Connacht-Ulster indicate prices fell 18.4 per cent in the year to 2012Q4, compared to a fall of 17.5 per cent in 2011Q4. The proportion of properties in Connacht-Ulster selling within four months has risen only slightly from 23 per cent a year ago to 25 per cent now, well below the national average (39 per cent ). The total number of Connacht-Ulster properties on the market in December was 14,200, down 17 per cent from four years ago and similar to levels last seen in early 2008.
Commenting on the report, economist with Daft.ie Ronan Lyons said: "The contrast between urban and rural property markets has grown substantially over the last 12 months, led by a recovering Dublin market. In the capital, almost two thirds of properties sell within four months currently. In Munster and Connacht-Ulster, the figure is less than one third, and there has been very little improvement in conditions over the last year.
"Ultimately, the difference between urban and rural areas is due to cities having no significant oversupply from the boom years and also enjoying better employment prospects. Nonetheless, the end of mortgage interest relief may have led to a rush of demand in 2012, so it remains to be seen whether the stabilisation seen in the second half of 2012 continues into the new year."