One third of homeowners paying cash as prices fall by two thirds since peak – agent
ONE third of house buyers are paying cash, a leading estate agency has warned.
Douglas Newman Good claims the value of a home in Dublin has fallen by almost two thirds since the peak and a fifth last year alone.
The agency claims that prices are now over-correcting and the trend may worsen this year as would-be buyers struggle to access mortgages.
But Keith Lowe, DNG chief executive, believes that 2012 will be the turning point for the crippled property market.
"Whilst there may be some further over-correction this year we believe that 2012 will be seen as a turning point in the market cycle," he said.
Mr Lowe claimed reforms in the budget, including attractive capital gains tax (CGT) and increased mortgage interest relief, will help the market.
"We have also noticed towards the end of 2011 a heightened demand and increase in transaction levels for large residential portfolios from cash rich Irish and foreign investors," he said.
"This is now likely to escalate this year as investors take advantage of low prices, lack of liquidity and the new CGT exemption measure."
In a separate report auctioneers Allsop Space claimed almost €39m cash was used by buyers in a series of special property auctions last year.
Other housing market reports have put the average house price fall nationwide since the height of the boom at 50pc - Daft.ie has said asking prices were down 18pc in 2011.
The DNG report found that property prices are down 64.7pc in Greater Dublin since September 2006 and back to levels not seen since 2000.