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House prices fall by 17% 27.01.09
Northern exodus hits
Inishowen property market
THE average price of a house in Inishowen has
plunged around €80,000 in just over a year, latest
figures show.
'The Sunday Times' property price guide shows a 17%
drop in prices across Donegal.
The average price of a new home in Donegal is now
€165,000 while for a second hand home, the price is
€160,000.
This compares to the €230,000 average commanded for
a four-bedroom second hand semi-detached home in
mid-2007 and the €350,000 plus prices commanded for
luxury detached bungalows.
The market view, according to the property price
guide, is that few property sales were achieved in
2008.
And Donegal was hit by a double blow - falling
prices as well as the plummeting value of Sterling
against the euro.
This all but eliminated the Northern buyer from the
local market.
"The 30% discount they received as a result of
foreign exchange rates, no longer exists and many
(Northern Irish buyers) have turned their backs on
the county," according to the report. |
It says investors
abandoned the Donegal market entirely in 2008 while
rent prices also fell.
Analysts suggest that Donegal's vulnerability to
unemployment will be a major factor in people's
ability to buy in 2009.
The price guide indicates that prices will stabilise
somewhat this year.
But Inishowen estate agent Leo McCauley disagrees.
He feels the market still needs a rationalisation of
prices to stimulate the market in the medium term.
"Buyers and banks are still letting it |
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be known that they feel
prices need to come down. Purchasers are offering
less money and the banks are offering less money,"
he said.
Property Price Guide Projection
New two-bed apartment
Jan 2008 - 165,000 euro
Jan 2010 - 150,000 euro
New four-bed semi
Jan 2008 - 230,000 euro
Jan 2010 - 170,000 euro
Three-bed bungalow
Jan 2008 - 260,000 euro
Jan 2010 - 225,000 euro
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