House prices in Offaly in Q3 2013 were 7% lower than a year previously, compared to a fall of 16% seen a year ago. The average house price is now €124,000, 58% below peak levels.
Prices in Dublin for the third quarter of the year however were up 7.7% compared to the same period in 2012, whilst outside of the capital prices fell by 6.7% leaving Offaly at about the average figure.
Prices fell between 3% in Kildare and 19% in Laois over the year. In the cities, prices fell by 3% in Galway, 5% in Cork and Waterford and 10% in Limerick.
The average national asking price is 1.5% down from the same time last year, the most stable it has been since 2007, and now stands at €170,400, down 55% from the peak.
Commenting on the report, economist with Daft.ie Ronan Lyons said, “With prices up over 10% year-on-year in some parts of Dublin, it is natural that people are worried about another bubble. However, concerns over a new Dublin bubble are probably overstated. Ultimately bubbles can only emerge with loose credit, and there are few who would argue that the housing market in Dublin is cursed with easy money. “Instead, the upward shift in Dublin prices is related to supply of properties, not credit. Not only has Dublin almost no backlog from the bubble years, it is also building next to no new homes. A city of almost half a million households is building only slightly more than 1,000 units a year. This is probably one tenth of the number of new homes it needs.”
The full report is available from http://www.daft.ie/report and includes a commentary by Ronan Lyons, economist at Oxford University and author of the Daft.ie Report.