House prices slashed by €40k to stimulate sales

A GALWAY City estate agency has slashed prices of around 100 secondhand homes on their books – with cuts of up to 40% from 'peak’ prices in 2006/7, in an effort to clear the overhang of unsold inventory.Colm O’Donnellan of O’Donnellan & Joyce Auctioneers said that following discussions with a large number of his clients, prices are “rolling back” towards 2005 levels. He said around 100 properties of the 300 on his books have had their prices cut, while the agency is also busy with appointments for viewings.“Figures show that prices have already dropped by around 20%, and there are predictions from economists of drops between 5% and 10% this year. Following discussions with clients, we have reduced prices by another 10%-20% in an effort to bring movement to the market. There are plenty of potential buyers out there, but if houses are to sell, they have to be priced realistically.“Vendors are being a lot more realistic, some had been in denial for the past nine months or so, but if they want to sell, they’ll reduce their prices. We’re confident that there are buyers out there for these houses, because money [mortgages] has never been cheaper and there are no investors competing.“Our phones have been very busy with appointments, but people won’t jump unless there’s value for money, and we believe there is now,” Mr O’Donnellan told the Galway City Tribune.He explained that...