Slower decline in Cork property prices

House prices in Cork are continuing to drop but the rate of decline is lessening according to the latest figures from a leading property website.

MyHome.ie has found that the price of 4 bed semis in Cork county fell by less than one per cent to €238,000 in Quarter 2 (Q2) this year from Q1. 

However an ESRI report two weeks ago suggested that prices in Cork city may be set to rise in the future as there are large differences in the stock of unoccupied homes in urban and rural areas.

The report by David Duffy and John FitzGerald, covered by the Cork Independent, finds that a significant increase in demand to buy houses in key urban areas could mean that house prices will start to rise once more.

The MyHome.ie report may support the ESRI findings as it finds that the rate of decline of house prices has moderated. 

In Cork, 3 bed prices are exactly the same as the national median price on €185,000, which have fallen by 2.6 per cent. The average price of a 3 bed semi in Q2 fell everywhere in Ireland, except for Clare and Dublin, where they went up by 3.16 per cent and 0.39 per cent respectively. 

In Cork the average price of a 3 bed semi in Q2 was €185,000, which is a drop of 2.63 per cent on Q1. Overall that is a drop of 44.78 per cent from peak prices in which was in Q4 in 2006.

Meanwhile, the average price of a property in Cork city fell by 4.8 per cent to €200,000 from €210,000. The corresponding figure in Galway city is €197,000 down 8 per cent while in Limerick city the price is €165,000 down 3 per cent and €170,000 in Waterford down just 0.6 per cent.

The author of the report, Annette Hughes, Director DKM Economic Consultants said that despite the fall in mix-adjusted prices in Dublin there are positive developments in some sub-markets.

“It is heartening to see some areas and house types record price increases, given that we are in the middle of the sixth year of falling prices. For example, Dublin City North and South and Dublin County North recorded increases of over 2 per cent while the price of 3 bed semis rose by 0.4 per cent,” Hughes said.

Asking prices nationally are now down by 49 per cent compared to the peak, which was Q4 in 2006, while Dublin prices are down by 56 per cent over the same period.

Based on average mix-adjusted asking prices, the average price for a home nationally has now dropped to €212,000 from €219,000 three months ago. 

New houses saw the smallest price fall, down 1.2 per cent, with the average price of a new house now standing at €220,000. The average price of a second hand home is €213,000, down 3.2 per cent, the same as for all properties across the state.

However, overall, Annette Hughes said that despite small pockets of price growth and stabilisation in some micro markets, the overall property picture remained depressed.