House prices fall here third largest

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House prices in Donegal have experienced the third largest fall of any part of the country in the last year, new figures say.

Asking prices in Donegal have continued to fall in the last 12 months and the slump in the market is set to continue.

End of year asking price surveys show house prices in the county have dropped by up to 18%.

The average asking price in the county is now€171,676, according to Daft.ie, which means a fall of 17.8 per cent in 2010. That is a fall of €97,000 from the peak of the market in 2007.

Only Dublin City Centre and Co. Wexford, which both dropped by 20%, experienced bigger drops.

The average price of a four-bed semi-detached house was €185,588 at the end of 2010, according to property website MyHome.ie. That was down 9.0% from the previous quarter, and down 10.4% in the last 12 months. Meanwhile, the asking price for a three-bed semi in the county was €165,000 down 3.8% from the last quarter, and down 7.6% from the previous 12 months.

Nationally, the website puts the the average price for a home at €271,000 compared to €280,000 three months ago and €312,000 twelve months ago.

The Daft.ie survey showed asking prices for residential property around the country fell by almost 5% in the final quarter of 2010. The total fall during the year was 14%. By the end of 2010, the national average asking price had fallen by 40% from the peak in 2007 and stood at just below €220,000. The typical time it takes to sell a property remains high but has fallen from 41 weeks to 36 weeks over the course of the year.

The market has now been in dcline for four consecuitve years and experts believe the oversupply of homes means the fall has further to go.