A new survey shows that house prices in Donegal fell over 17% last year.
The Irish Times House Price Guide for 2012 will be published tomorrow and gives a detailed break down of the decline of the property market Donegal since 2007.
A second-hand 2-bed apartment in 2007 cost €145,000 and is expected fetch €60,000 this time next year while a second-hand 3-bed town house fetched €188,000 but will be worth just €89,000 in January 2013
In 2007 a 3-bed bungalow on half an acre on outskirts of a town would set you back €250,000 but by January of next year its predicted value will be €130,000.
The Irish Times Survey is of property specialist from across the country with many predicting that prices will level off in 2012 but Niall Toner of the Sunday Times says prices in Donegal will drop 8% this year:
CO DONEGAL
Down: -17.5% on average
Predicted change to Jan 2013: -8% on average
It was a challenging year with supply outstripping demand and negative media compounding lack of consumer confidence. Prices fell by between 15 and 20% a deterioration on 2010’s 11% drop. This is largely due to the fact that banks are just not providing loans and although enquiries were up on the previous 12 months, sales were falling through, due to lack of finance. Amount of stock remains a problem and supply continues to outstrip demand. Detached rural homes sold well in the latter half of the year and detached houses close to a town continue to be in demand. Holiday homes also boosted market activity with sales strong in areas such as Dunfanaghy, where punters are hunting for good second-hand properties. Proximity to Northern Ireland has helped this trend as Co Donegal has traditionally been a favoured holiday destination. And with sterling getting stronger our agent expects holiday home sales to be on the upward curve in 2012. Investors were barely present and they purchased only 3% of homes sold last year, although rentals are strong and are holding. Values are beginning to even out and dips are predicted only in second-hand 2-bed apartments (-5%) and second-hand 3/4-bed semis in a town (-10%), otherwise prices are firming up.
Second-hand 2-bed apartment:
Jan 2007: €145,000
Jan 2011: €85,000
Jan 2012: €65,000
Jan 2013: €60,000
Second-hand 3-bed townhouse:
Jan 2007: €188,000
Jan 2011: €110,000
Jan 2012: €89,000
Jan 2013: €89,000
Second-hand 3-bed semi in a town:
Jan 2007: €190,000
Jan 2011: €125,000
Jan 2012: €95,000
Jan 2013: €85,000
Second-hand 4-bed in a town:
Jan 2007: €195,000
Jan 2011: €140,000
Jan 2012: €112,000
Jan 2013: €100,000
3-bed bungalow, half an acre, outskirts of a town:
Jan 2007: €250,000
Jan 2011: €155,000
Jan 2012: €130,000
Jan 2013: €130,000
3-bed bungalow, half an acre, more than 1.5km outside a town:
Jan 2007: €226,000
Jan 2011: €155,000
Jan 2012: €120,000
Jan 2013: €120,000
New holiday home:
Jan 2007: €250,000
Jan 2011: €160,000
Jan 2012: €150,000
Jan 2013: €150,000
Second-hand holiday cottage:
Jan 2007: €255,000
Jan 2011: €165,000
Jan 2012: €140,000
Jan 2013: €140,000
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