Offaly house prices halve since peak

The latest house price report released by Irish property website Daft.ie this week has revealed a slump of 6.6% in Offaly house prices between September and December of last year. The report also revealed price crashes of 53.6% - or €145,533 - in Offaly since peak recorded prices in 2007. The same report detailed an average countrywide price slump of 7.7% in the same period however. Nationally the quarter on quarter decline represented the sharpest fall in prices to date, with last December's average prices a massive 52% below their 2007 peak. Neighbouring Laois experienced a slightly higher percentage drop at just over 56%, while Westmeath experienced a slightly lower price drop of just under 51%. The latest report shows a year on year change in Offaly house prices of 15.9%. Latest prices in Offaly were recorded as €68,000 on average for a one bed home, €105,000 for a two bed, €114,000 for a three bed, €194,000 for a four bed and €287,000 for a five bed property. Last year's national fall countrywide was recorded as 18%, which is as large as the fall seen in 2009. The average asking price for a house in Ireland is now €175,000, 52% lower than a 2007 average price of €366,000. Looking more specifically at the midland counties of Offaly, Laois, Westmeath and Longford prices fell by seven percent in the final three months of 2011, compared to a fall of 4.6% between June and September. Commenting on the latest report Daft economist Ronan Lyons said while it's tempting to see larger house price falls as a bad thing it's actually better if prices race to the finishing line rather than crawl. Looking to the year ahead he said confidence and finance are central. "It is vital to remember that recovery in the property market does not mean an increase in prices, it means an increase in transactions," he said. "This is ultimately down to the banks, who will not resume lending until the Government's stress tests stop punishing them for doing so."