HOUSE prices in Limerick continue to fall at a time when prices in Cork and Galway are on the up, according to a review of 2014 conducted by Ireland’s largest property website.
Daft.ie found the average asking price for a house in Limerick city was €122,383 in the fourth quarter of the year, down almost 3% on the corresponding quarter in 2013 and a whopping 54% down on peak levels.
In County Limerick, average asking prices were down almost 1% to €136,765 while in Clare prices rose by 2.2% to €130,964 over the 12 months. Other areas which saw house price increases over 2014 were Galway city (5.7%) and Cork city.
“While prices in Cork city are more than 12% higher than their lowest point, prices in Limerick - both city and county - are still falling,” the report states.
This is at odds with the more positive sentiment expressed over the latter half of 2014 by auctioneers in Limerick city, many of whom claim that houses in the city are now routinely fetching more than the asking price and that this is set to continue while supply remains a problem.
The daft.ie report notes that the average asking price for a one-bedroom apartment in Limerick city in the fourth quarter of 2014 stood at €60,000 (+ 7.1%); that it cost €66,000 (-4.5%) for a two-bedroom terraced house; €108,000 (-2.6%) for a three-bedroom semi-detached; €176,000 (-6.9%) for a four-bedroom bungalow and €231,000 (5.7%) for a five-bedroom detached house.
A feature of the report nationally is an apparently chilling effect in the latter half of the year of Central Bank proposals to stave off a property bubble by requiring borrowers to save up larger deposits.
“The intention of the proposed Central Bank limits on mortgage lending is to limit increases in house prices by affecting both buyer expectations and the credit available to them. It seems that, even though the limits have not yet come into force, they have already had some impact,” commented the report’s author, Prof Ronan Lyons.