The latest daft.ie House Price report has been released this morning. All the goodies are up at the Daft Report homepage, including an excellent commentary by Oliver Gilvarry of Dolmen Stockbrokers, who was quoted widely in the press today, and the usual snapshots, indices and maps.
The main headline is that asking prices fell 5.7% in the second quarter of the year, a larger fall than any other quarter apart from Q4 2008. This means that asking prices fell almost 20% between July last year and June this year, and have now fallen by almost a quarter from their 2007 peak. Dublin city centre asking prices fell by more than 11% for the second quarter running.
One particular map, the nationwide quarterly changes in asking prices, was printed in both the Irish Independent and the Irish Examiner this morning and is reproduced below.
What do we know now that we did not know before this report?
- It is now clear that the more urban the area, the greater the fall in asking prices. Dublin city centre asking prices have fallen 34% from the peak, compared to less than half that fall in Kerry and Tipperary.
- As a general rule, the greater the fall in asking prices, the shorter a typical property stays on the site. In Dublin, the typical time-on-market was just over five months, compared to more than ten months in some parts of Connacht and Ulster.
- There is tentative evidence that there is a greater level of transaction in those markets with greater falls. One third of Dublin properties listed on the site on June 1 came off the site that month, the highest figure for over a year. This compares with less than 10% in large parts of Munster, Connacht and Ulster.
- Sellers – perhaps influenced by their estate agents – are adopting a wait-and-see approach in some counties, while they are playing catch-up in other counties. Some of the counties with the largest falls in asking prices in Q1 saw relatively stable prices in Q2 (Sligo, Wexford), while others with small falls earlier in the year fell sharper between April and June (Kilkenny, Cavan).
- The national average time-on-market has increased significantly from just six weeks in early 2007 to over seven months now.