Thursday, July 16, 2009

IAVI Auctioneers report 9.2% fall in house values for Q2 2009

15th July 2009 – A member survey by the Irish Auctioneers & Valuers Institute (IAVI) has confirmed that value of houses has dropped by an average of 9.2% nationwide in the second quarter of the year.
Conducted amongst IAVI members nationwide, this survey shows that the values of houses in Dublin declined by an average of 7.7%.
In Munster, values dropped sharply by an average of 10.7%. Meanwhile, in Leinster and Connaught/Donegal, values decreased on average 9.6% and 7.4% respectively. Second hand apartment prices fared somewhat worse than houses in urban areas during Q2 2009, with average decreases in value of 11.7% (one bed) and 12.5% (two bed) in Dublin and 12.2% nationally for both one and two bedroom apartments.
Since the start of 2009, the survey has shown that, nationally, house prices dropped by 16.9% in the first six months of the year, with the following regional results: Dublin houses are down by an average of 12.2%. In Munster, values are down 22.3% on average. In Leinster and Connaught/Donegal, values decreased on average 19.9% and 14.9% respectively.
According to Simon Ensor from the Residential Panel of the IAVI National Council, “These results are based on the experience of professional practitioners conducting property transactions; they are more reliable than advertising-based statistics or other surveys that are based on data from some months ago. In effect, the IAVI survey represents the view from the coalface of those engaged in selling property in the current market. “Depreciation has continued apace for the second quarter of the year. For the first half of 2009, new urban house prices are down by an average rate of 17.14%, second hand urban homes are down 18.4%, new rural homes are down 22% and second hand rural homes are down 20%.
“While these figures are very disappointing there is a view amongst IAVI member firms that, although prices have not hit the bottom yet, they are extremely close to doing so.“IAVI members, particularly those in urban areas, believe that activity levels have increased with competitive bidding on well-priced houses occurring once more. However, it’s fair to say most activity is at the more affordable end of the market. The lack of liquidity in the banking world appears to be restricting activity in the middle to upper end of the market.
To breathe life back in to this sector, it is crucial that banks increase their lending levels, whether this is enabled by the introduction of NAMA or other means,” he said.
Click on the image for full-size view.

Here is the Q1vs Q" result. Again, click on the image to view.

Tuesday, July 7, 2009

Junction Festival Cafes

Just back from a quick survey of the Junction Festival cafes.
This is an initiative where the organisers took over 5 vacant units in the town, turning them into themed cafes for the duration of the festival.
There are 5 cafes.
The Canine Cafe, in Market Place, is billed as “an urban social space for both species with canine and human cuisine, beds and chairs, water bowls, tea & coffee and a reading library.

This café only allows humans under dog supervision… otherwise you may glance at proceedings from a viewing area. This is a visual art project, a living studio, a social experiment and an inter-species meeting place all under one roof for the ten days of the Festival.”
It smelled a bit, but then most dog-lovers probably would not mind.

Next up was The Break Station.

This is billed as “A relaxed and vibrant space to chill out; a room full of dancers of different styles…..You can watch the action, be part of it, take a lesson or just chill out and relax and hang out with your gang and listen to some new tunes. Take a class in street dance styles such as krumping, house dance and old skool hip hop.”

Local dancers will collaborate with Upswing over the festival period to teach and curate the café with open mic sessions, dance classes and live dance events and performances.

This smelled a bit too 8), but again, not in a way that dedicated dancers would be unacquainted with!

The Writing Room where “writers, readers and booklovers of all age and size are invited to drop in for a selection of literature related activities” was busy when I called in, with a workshop underway discussing writing for film. About 20 people were engaged in discussion.

Whispering, so as not to interrupt, the staff offered me coffee, but time constraints meant I could not stay.
This looks like a nice Cafe, the setting in the old Angela’s Coffee Shop is good. I will revisit.

Shrine is on Mitchel St, and is based around the creation of a contemporary "Shrine”, in the form of a small Wooden House. The Shrine will be made up of donated jewellery, beads, broken chains, earrings, bangles and whatever people offer to be used for such the piece. Artist Patricia Looby (from Fethard originally) is putting it all together.

I did not get to the Robinsons’ Sunday Roadshow Cafe, which attempts to re-create life as lived by a northern Baptist family who moved to Dublin in the 1960’s. I will do at some stage.

All Cafes are open 11am-7pm form 4th-11th July incls. (except Sunday 2-5pm).

Anyone else with any views on the Junction Festival?

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Thursday, July 2, 2009

June Viewing and offer figures – Half year wrap-up

Are things looking up for beleaguered estate agents in Ireland?

While there is still a lot of bad news regarding the economy, jobs etc, there has been a big increase in activity over last month.
Viewings and offers have increased, month on month.
For the first time this year, offers have exceeded the same month in 2008!

The lack of finance seems to be abating, with trader-uppers now getting finance as well as first-timers, albeit with some difficulty.
We have noticed a marked increase in sales of home with a value around €300k, whereas up until now, €200k was a cut-off point!

Enough of my analysis, here are the figures:

June 2008: Viewings 89 Offers 39

June 2009: Viewings 77 Offers 41

Amazing to see that offers come in more than 50% of viewings. Viewers are very focused, have done their homework, know the houses they want to see and the price they are willing to pay.
While viewings are down by 12 on May, offers are up by 2, giving an exceptional strike-rate.

Home-sellers who are getting viewings have addressed pricing (in some cases down 25% from 2008!) and more deals are going through.

The six-month figures are:

Jan-June 2008: Viewings 695 Offers 236

Jan-June 2009: Viewings 409 Offers 192

So there you have it. Six-month on six-month, viewings down by 41%, offers down by 19%.

After the dreadful first 3 months of the year, there has been a substantial lift in activity, albeit at a lower value range.
However, it is not as bad as the bleak, doom-laden picture being painted by the national media.

Houses are selling...if priced for the current market.

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