Property prices up 16 percent since mid 2004

Property prices in County Roscommon have risen 16 percent since mid 2004, according to a recent survey by MyHome.ie.   The inaugural MyHome.ie Property Barometer published this week shows that asking prices for property in Roscommon have risen by 16 percent since mid-2004. The MyHome.ie research shows that asking prices in the county are still running eight percent ahead of those 12 months ago, despite a widely reported slowdown in the property market.   The MyHome.ie Property Barometer is based on an analysis of asking prices for property since the third quarter of 2004. According to the research, the average asking price in Roscommon is now €310,866, up from €267,781. Despite the rise, the county has the second lowest average asking price nationally behind Leitrim.   Nationally, asking prices for property have risen by close to 30 percent. The MyHome.ie database contains more than two-thirds of all residential properties for sale in Ireland. The Report, which includes a commentary and Mortgage Repayment Index by independent economist Jim Power, is based on asking prices for property which give an accurate indication of vendor expectations in the market.   Rahara native, Jim Miley, Chief Executive of MyHome.ie, described the Barometer Report as providing a true reading of the ‘pulse’ of the Irish property market. ‘Some commentators have reported an almost complete standstill in the market in terms of properties sold. The facts are somewhat different. In the first three months of 2007, over 8,000 properties that had been advertised on MyHome.ie were sold or sale agreed, with over 3,000 sold in March alone,’ he added.   The MyHome.ie Property Barometer shows the average asking price for a property increased nationally by 29.3 percent between Q3 2004 and Q1 2007. The average asking price for new properties grew by 29.6 percent, while second-hand properties grew by 28.6 percent. The report includes a four-page, count-by-county guide providing overall and quarterly price increases to the end of March 2007. This shows significant variations in price performance across different locations. At the top of the scale the average asking price in Offaly increased by 49.2%, while prices in Monaghan increased by just 6.4% over the period. Independent economist, Jim Power, says the market is now slowing down from previous exceptionally strong levels to what is regarded as ‘more sensible and sustainable levels’. He said: ‘The overall health of the market is still very strong and there are no indications that the market could suffer a hard landing over the next couple of years.’   Nationally, three and four-bedroom semi-detached properties and two-bedroom terraced properties showed the strongest growth, with the asking price for apartments lagging behind the national average. Last year was characterised by strong growth in prices during the first six months, but there was a significant slowdown in the second half.   Since then, between Q4 of 2006 and Q1 2007, the national average asking price declined by three percent. The price declines were recorded across all property categories, with the exception of new three-bedroom semi-detached houses where the asking price rose by 5.6 percent during the period.   Elsewhere in the publication, Economist Jim Power examines the trend in mortgage repayment burden over the past 22 years. The Mortgage Repayment Index tracks mortgage repayments since 1985 relative to the trend in house prices and shows that while house prices have increased four-fold in real terms over the period, mortgage repayments have increased by just over two fold representing the much lower interest rates in recent years.