There was further bad news for homeowners in Donegal yesterday with the latest survey showing that the average price of a three bedroom house here is just €157,000 – down 9% on last year.
However one Inishowen auctioneer believes the average house prices in Inishowen is much lower than the survey suggests.
Dara Furey from Sean Furey Auctioneers in Buncrana believes the price of a three bed semi in Inishowen to be around €130,000. The price of a four bed semi €140000 and detached is about €190,000.
“I think the market is currently static due to a number of reasons which include the unavailability of finance from the banks and building society’s and the lack of confidence in the market.
“I see prices remaining static until consumer confidence returns and wouldn’t expect them to go much lower.”
In a nationwide survey, carried out by leading estate agents daft.ie, it showed that house prices in Donegal have now reverted back to 2001 prices.
Economist Ronan Lyons (pictured left, below) from daft.ie said counties like Donegal will feel an even further fall in prices in the coming months.
“House prices in places like Donegal never really fell as much as places like Dublin and Galway.
“These are the places which will pick up their prices quicker when things begin to turn around. Unfortunately we feel that places like Donegal will continue to suffer falls in prices as a result of that until things stabilise,” he said.
The Q2 report by daft.ie shows the average asking price is now just half of what it was in 2007.
However auctioneer, Mr Furey, thinks it is not all doom and gloom for people in Inishowen.
“The upside of the current situation is that there are some great deals available and if someone is able to buy they could get a great house at very affordable prices. We have a number of houses under €100000 and most others under €200000.
“Sellers should allow six to nine months to sell their property if it is priced reasonably. If it is overpriced they should not expect to sell within any time frame.”
Mr Lyons said the second quarter of 2011 has seen one of the sharpest adjustments in prices since the correction started four years ago.
He believes this sharp fall may actually reflect increased realism on the part of the sellers.
“As well as this other factors are also important. One is the intense competition sellers face due to the high level of stock sitting on the market.
“Another factor is that would-be buyers continue to face significant obstacles to obtaining a mortgage. Nonetheless, over half of properties posted for sale in Dublin at the start of the year are now sold or sale agreed.”