Asking prices for properties in Connacht fell by an average of 7.2 per cent in the final three months of 2011, compared to a fall of 2.7 per cent between June and September, while the average asking price in Mayo in late 2011 was €164,000, a fall of €102,000 from the peak, according to the latest review by Daft.ie Asking prices for residential property around the country fell by an average of 7.7 per cent between September and December. This is the sharpest three-month fall in prices to date and means that the percentage fall in prices over the course of 2011 was 18 per cent, as large as the fall seen in 2009. The average asking price is now just over €175,000, 52 per cent below the 2007 peak of €366,000.
In regard to property sales the report notes that in Dublin about one half of properties sell within six months, while in Connacht and Ulster it takes a full year for the same proportion to sell. Across the country as a whole, properties that do not sell within the first few months typically find it difficult to find a buyer in subsequent months: most will still be on the market after a year.
Commenting on the report, Ronan Lyons, economist with Daft.ie said: “Looking ahead to 2012, confidence and finance are central. It is vital to remember that recovery in the property market does not mean an increase in prices, it means an increase in transactions. This is ultimately down to the banks, who will not resume lending until the Government's stress tests stop punishing them for doing so.”
The full report is available from www.daft.ie/report
