House asking prices fall 17% in Offaly

ASKING prices for residential properties in Offaly have taken a 16.5% dip over the last year.

ASKING prices for residential properties in Offaly have taken a 16.5% dip over the last year.

The latest Daft.ie report has revealed the average asking price of a house in Offaly now stands at €171,990. This represents a 10% drop between the third and final quarters of last year.

This also show a drop of 44.7% since houses hit their peak prices.

According to the property site the asking price for a two bedroom house in the county is €108,000, €154,000 for a three bedroom, €199,000 for a four bedroom and €329,000 for a five bedroom house.

Asking prices around the country fell by almost 5% in the final quarter of 2010. This means that the total fall during the year was 14%. By the end of 2010, the national average asking price had fallen by 40% from the peak in 2007 and stood at just below €220,000. The typical time it takes to sell a property remains high but has fallen from 41 weeks to 36 weeks over the course of the year.

During 2010, asking prices in Dublin fell 14% on average, compared to a fall of 15% outside major cities. Prices in Galway were 13% lower than a year before, after prices fell sharply in the final three months of the year. In Cork, Limerick and Waterford, prices fell by between 10% and 12% over the course of the year. Elsewhere, the extent of price falls varied from less than 10% in Mayo to 20% or more in Wexford and Kilkenny.

2010 marks the fourth year of correction in Ireland's property market, with a fall of 14% compared to a fall of 20% in 2009. Ronan Lyons, economist with Daft.ie, said: "Despite another year of price falls, the market does not yet look in balance. On the supply side, the number of properties for sale remains very high, at close to 60,000, while on the demand side, a range of factors continue to weigh on prospective buyers, including tight credit and expectations of higher taxes and interest rates in coming years.

"Nonetheless, not all parts of the country are adjusting at the same pace," Mr Lyons continued. "Parts of Dublin have seen price falls of up to 50% from the peak, and we are seeing a steady fall in the total number of properties for sale in the capital. Some counties however, have seen price falls of just 30% and the number of properties for sale remains very high. It is the cities and in particular Dublin that are most likely to stabilise first, and it remains to be see if this happens in 2011."