Half of all house-sellers lower the price twice
AROUND half of all houses on the property market in the last two years have dropped their prices twice, new figures show.
A study of almost 100pc of second-hand marketed properties by the Property Week website revealed that the number of homes that reduced advertised prices has been steadily increasing since January 2007 and reached 150pc by the end of last year.
Cuts in prices have become more dramatic over that period also, with drops reaching an average of 15pc by December 2008.
They followed a "denial" period in 2007 when deflation in value commenced but prices remained steady.
The report found that deflation continued in 2008, hitting a low of minus 11pc in December. And asking prices at the end of 2008 receded to 2005 and early 2006 levels.
Prices on two-bed apartments fell on average by 17pc, three-bed semis dropped by 15pc and four-bed detached fell by 14pc. Property Week's Paul O'Connor said the falling prices were set to continue for some time.
"Everyone was in denial in 2007 so advertised prices were remaining quite high and it was only towards the end of 2007 and into 2008 that price deflation really took hold," he said.
"We are watching the property market every week in an index of every single price change and new property that comes on the market and, while prices are still dropping every week, the drops are not as dramatic.
"Everybody is waiting for the bottom and, when the bottom comes, everybody acts and you can then have price inflation -- but I think that's still far off for our economy."
- Stephen O'Farrell
