With house prices estimated to have dropped 40 per cent in the recession and a new flat-rate property tax in the offing, the revelation this week that the price of a three-bed semi in county Mayo has fallen by 6.35 per cent comes as no surprise.
According to MyHome.ie the price of a 3 bed semi in Mayo fell by 6.35 per cent to €177,000 down from €189,965 in the first quarter of 2010. The survey did also show though that in Dublin there are signs the three-bed market is stabilising. Overall, the average asking price for a home nationally is now €291,278 compared to €301,449 three months ago and €337,600 12 months ago.
Interestingly, new homes fell victim to bigger price falls compared to second hand homes during the last three months, down 4.2 per cent as against 3.3per cent, with the average price of a new home now standing at €259,800 while that of a second hand home is €295,700. Both these sectors are down 30 per cent since the peak of the market when the corresponding prices were €369,200 and €423,000. In Galway the fall was more in line with the national figure at 3.6 per cent giving an average family home price of €265,000.
Commenting on the results, independent economist Paul Murgatroyd said that while prices are continuing to fall, further evidence is emerging that some sectors are starting to show signs of price stabilisation.
“At the start of the year we forecast that prices would decline by around 10% on average during 2010 with the majority of the decrease coming in the first half of the year and that appears to be what’s happening. The second half of this year will give us a clear indication of the timeframe for a definitive bottoming of the market,’ he said.