In the first three months of 2013, house prices in Longford dropped by a further 5%, according to Daft.ie. The latest information points to a fall of 23% on the same time last year with the average cost of a four-bed semi-detached house in the county amounting to €115,000 - 60% below peak levels.
Commenting on the report, economist with Daft.ie Ronan Lyons said that these latest figures indicated that the gap between prices in Dublin and those elsewhere, was growing “and growing quite rapidly”.
“A year ago, a four-bedroom detached home in South County Dublin was 2.6 times the prices of the same property in Mayo, but that ratio has since risen to 3.5, well above levels seen at the bubble,” he added. “The annual rate of decline in Longford of 18.6% is highest nationally after Donegal for this house type, at 21.7%. Meanwhile, the median asking price of a three-bed semi-detached home in Longford fell by €5,000 to €90,000 – a decrease of 5.3%, and that makes Longford the second cheapest place in the country to buy a home after neighbouring Leitrim where the average cost there is €85,000.”
The property expert went on to say that, the growing difference between Dublin and elsewhere signified that first-time buyers were no longer prepared to sprawl and pay the costs of long commutes. “With prices actually rising again, and only in certain parts of the country, this has even greater implications for the Government, as it suggests that there are not enough properties in areas close to jobs and other amenities that first-time buyers are looking for,” Mr Lyons continued.
“At 4.8% - the annual rate of decline in Dublin is about half the national rate. Overall asking prices in Dublin have been reasonably stable over the last year and this may indicate that they are now levelling off.
“Nationally prices are continuing to fall, but the annual rate is under 10% for the first time since 2008, and this is also a positive development.”
For the first time since the property crash in 2006, Dublin prices have remained unchanged for the second quarter in a row.
The annual rate of decline in Dublin was 4.8% in the quarter, down from 12% in Q4 2012. Figures also indicate that the mix adjusted average house price nationally now stands at €197,000 down 52% from the peak of the market.
In Dublin the corresponding figure is €236,000, down 56% from peak. Nationally, the average house price stands at €197,000 - down 52% since 2006. Check out www.daft.ie for more details.