Residential property prices in Ireland fell again in Q3 2010, this time by 3.9%, taking them down by 11% for the year to date, according to MyHome.ie.

The latest fall brings the total decline from the peak of the market in late 2006 to almost 32.4%. The average asking price for a home nationally is currently €280,000 compared to €291,000 in Q2 and €323,000 twelve months ago.

Jean Goggin, an economic consultant with DKM Economic Consultants, said: “Last year the overall decline was 14.5% and so far this year the annual decline is 13%. While this suggests some improvement in property market conditions, it is clear that we have not yet reached the bottom of the market. However 2011 is likely to bring some improvement in the general economic climate which should boost consumer confidence and provide more certainty to households regarding employment and incomes. We could then see a modest improvement in some segments of the housing market.”

Asking prices in Dublin fell by 4.3% in Q3, and have now fallen over the last 12 months by just under 16% and are by 39% since their peak. The average asking price for a house in Dublin now stands at €325,000 down from €340,000 in Q2 and €386,000 a year ago.

Prices in Limerick city fell by 3.4%, after a fall of 7.3% in Q2, with a median asking price of €215,000. Limerick has had a total fall of 24.6% from the peak of the market, the urban area with the smallest total decline. In Cork the median price fell by 3.6% to €265,000, while in Galway the fall was 3.7% giving a median price of €255,000. At the peak of the market the median price in Galway was €450,000 and since then prices have fallen by just over 43%, the most dramatic fall recorded in any urban areas.
Angela Keegan, managing director of MyHome.ie, said: “It was interesting to note that the price of new homes fell at half the rate of second hand homes and this levelling in prices may be due to sizable price reductions sellers made to new homes earlier this year. The sharp price falls recorded in many of the capital’s commuter counties such as Wicklow, Meath and Kildare are not surprising given the rapid increase in unemployment and its implications for housing demand in these areas.

”We know there are buyers out there, a lot of them with mortgage approval, but until consumer sentiment improves they will continue to stay on the sidelines. For now all eyes will be on the budget. The good news for anyone contemplating buying a home is that properties have never been as affordable.”