Offaly house prices down 56% from peak levels

House prices in Offaly have fallen 56% since their peak and show no signs of stabilising yet according to the 2012 In Review report published by property website Daft.ie.

House prices in Offaly have fallen 56% since their peak and show no signs of stabilising yet according to the 2012 In Review report published by property website Daft.ie.

In Offaly, prices in late 2012 were 13% lower than a year previously, compared to a fall of 14% seen in the year to late 2011. The average house price is now €129,000, 56% below peak levels. The figures are worse than the national average.

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 twelve months, led by a recovering Dublin market. In the capital, almost two thirds of properties sell within 4 months currently. In Munster and Connacht-Ulster, the figure is between one in three and one in four, and there has been very little improvement in conditions over the last year.

“Ultimately, the differences are 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.”

Asking prices in Dublin in the final quarter of 2012 were just 2% lower than a year previously, according to report. For the country as a whole, prices were 9% lower than a year previously and 54.8% below their peak in 2007. In general, the rate of price falls in the cities is less than elsewhere, with prices down by roughly 10% in Cork, Limerick and Galway cities, but by 17% in Waterford. Outside the cities, prices in the final three months of the year were 13.3% lower than a year previously.

The figure for Dublin is in stark contrast to this time last year, when prices in the capital were falling at a rate of more than 20% per year. Indeed, in south county Dublin, asking prices have risen by 3.1% on average in the last twelve months, while in Dublin city centre, they are unchanged. In contrast, asking prices in Connacht and Ulster are 20% lower now than a year previously. For the first time since prices started to fall, the fall from the peak is greater in Connacht-Ulster (55.9%) than in Dublin (55.4%).

An analysis of 4,500 Price Register transactions during the year for which information on property type and size is available also suggests that property prices may be stabilising. Prices registered were largely stable for the third quarter in a row, with the average transaction price in late 2012 €151,000. The comparable figure for the first quarter of the year was €154,000.

Figures for time-to-sell indicate that there has been some improvement in market conditions over the past 12 months, with 4 in 10 properties selling within 4 months, compared to 3 in 10 a year ago. The total stock of properties sitting on the market nationwide is, at 47,000, at its lowest since November 2007.

The full report is available from www.daft.ie (click here to view report) and includes a commentary by Ronan Lyons, economist at Oxford University and author of the Daft.ie Report.