The first quarter of 2012 saw the smallest decline in asking prices since the market began to fall in 2007, according to the latest Daft.ie House Price Report. Prices fell by 1.4% on average during the first three months of the year, compared to 8% in the final three months of 2011. The national average asking price is now €177,000, down 52% from the peak.
In Munster, asking prices fell by 4.3% in the first three months of 2012, compared to largely stable asking prices elsewhere in the country. The fall is still below the 7.2% fall seen in the final three months of 2011. The average asking price in Tipperary for the first quarter of 2012 was €159,782. This represents a 0.5% rise from the previous quarter, making it the only county in Munster to experience a rise.
Ronan Lyons, Economist at Daft.ie, said: “The latest figures, which suggest more stable asking prices and increased activity, may come as something of a surprise, given general economic conditions. It is possible that the market was waiting to see if the substantial reductions seen in late 2011 would have an impact. Optimists will also point out that, compared to fundamentals such as rents and incomes, prices in areas such as Dublin city centre do not seem unrealistic. Nonetheless, it is unlikely that prices will stabilise nationally until there is a substantial increase in activity, which itself will require mortgage lending by banks.”