House prices in Galway City dropped by ten per cent over the course of last year.
That’s according to the annual Daft.ie House Price Report, which was published last week and showed that the freefall of the property market in the West is slowing considerably. While prices in late 2012 were ten per cent lower than a year previously, this was less than half of the 23 per cent drop experienced in 2011. The average house price in the city now stands at €167,000, 57 per cent below peak levels.
This reflected the case in the county also, where house prices are down 57 per cent on the Celtic Tiger boom and the average now stands at €138,000. The survey found that prices in late 2012 were 19 per cent lower than a year previously, compared to a fall of 14 per cent seen in the year to late 2011.
Commenting on the report, Daft.ie economist Ronan Lyons said that the contrast between urban and rural property markets has grown substantially over the last twelve months, led by a recovering Dublin market.
“In the capital, almost two thirds of properties sell within four months currently. In Munster and Connacht-Ulster, the figure is between one in three and one in four, and there has been very little improvement in conditions over the last year,” he explained.
“Ultimately, the differences are due to cities having no significant oversupply from the boom years and also enjoying better employment prospects. Nonetheless, the end of mortgage interest relief may have led to a rush of demand in 2012, so it remains to be seen whether the stabilisation seen in the second half of 2012 continues into the new year.”