Myhome.ie barometer finds asking prices continue to drop

Asking prices have fallen further in the third quarter of this year, according to new figures, which also claim that on the upside this has reduced the average length of time it takes to sell a property from seven months to six months. The average asking price, so far this year, for a three-bedroom semi-detached house in Cavan is €188,000, according to new figures from myhome.ie. The portal's property barometer says that this shows a decrease of 15.77% from the peak of the market. The figures say that the rate of decrease in asking prices has accelerated in the third quarter of 2009, as compared with the second quarter of this year. The average three-bedroom house priced at €188,085, shows a decrease of 0.39% between the second quarter of this year and the third. It shows a decreasse of 9.70% between the third quarter in 2008 compared with this quarter in 2009. Meanwhile, the myhome.ie figures found that a four-bedroom detached house in Cavan had an average asking price of €330,144 in the current year up to September. The corresponding decreases here are: 2.23% of a decrease since the second quarter of this year; 4.79% of a decrease since the third quarter of last year; and a 13.73% decrease since the peak of the market. National context Cavan, however, is not doing too badly in a national context, according to the myhome.ie asking prices. The national asking prices are down 22.01% since the market peak. Asking prices in Dublin have now fallen back to late 2004 levels, according to the barometer, now down 27.7% since the peak. The average asking price nationally is €323,180 and in Dublin it's €385,993. And nationally, the average asking price for a new home, at €294,835, has fallen below €300,000 level for the first time. "Weak demand and fragile consumer confidence over the summer months contribute to falling prices," according to the report. "The impact of lower asking prices has reduced the selling time from seven months to six months nationally since the second quarter of 2009." Affordability improves The barometer measures movements in asking prices across the five key segments of the market and also includes a county by county picture of asking price movements and the average asking price at a county level. The report also contains a breakdown of asking price movements for the two most common property types in each county. Commenting on the results, economist Paul Murgatroyd said "the trend of a further stabilisation in prices did not materialise during the third quarter as the rate of decrease in asking prices accelerated once again. As a result it is clearly still too soon to call a bottom to the current market cycle although with interest rates remaining very low and prices continuing to fall affordability continues to improve". "Improved affordability alone cannot turn this market and the missing ingredient is confidence however there are tentative signs that consumer confidence is stabilising albeit at very low levels historically," he continued. He further added "on a brighter note there now exists solid economic evidence that begins to point toward a stabilisation in the wider economy, with consumer spending levelling out after a period of steep decline, and the rate of growth in unemployment continuing to ease back. These are only small, but nonetheless significant steps along the path to recovery which is now widely forecast to occur during 2010." Angela Keegan, Managing Director at myhome.ie was positive and optimistic about the findings: Buyer's market "The barometer clearly shows that the market is still in favour of buyers at the current time but sales are still being achieved and property is still moving. The impact of lower asking prices has reduced the selling time," she said. "In addition we know that first time buyers are slowly gaining access to finance for property purchase which is encouraging although their outlook on the future remains extremely cautious at the present time. "Hopefully as this year progresses and we move into 2010 sentiment will be underpinned by some more positive economic news, the availability of finance for the market generally will gradually become less restrictive and peoples' confidence in the economy and the property market will slowly be rebuilt." The myhome.ie barometer is compiled from asking price data collected from a quarterly snapshot of active, available properties for sale on the portal website myhome.ie.