Will we see 3-Bed Semis in Delgany for 380k?

leonardjos

I've gotten mortgage approval for 380k and I decided that this is the most I want to pay for a house, given uncertainties over the future etc. But i also want to buy a house that I would be really happy with for the next 10 years, as I dont think the next few years will be an ideal time to try to sell and move.

Out of the houses that I've viewed, the ones in Delgany fit my list of requirements the best. New modern houses, well laid out, energy efficient, nice community atmosphere, lots of other young families there, green space, good for kids etc. I'm thinking of the various developments at Delgany Wood in particular. At the moment these start from 500k on the second hand market.

The developer recently advertised the last of these from 420k range. I decided I wouldn't go for this, due to the risk of the value going lower than this. The prices on the second hand market are proving slower to reduce.

Do people think that the current house price correction will see 3-Bed Semis in Delgany drop to the 380k level? Or will such a house always hold a value greater than 400k or 450k?

I have been thinking that even if nobody buys these for 500k, the owners probably can't sell for less than that, due to their negative equity position. Will this factor prevent such houses ever coming onto the market for the 380k range?

SkepticOne

If the houses are being advertised at 420k then 380k is just a 10% reduction which you should be able to swing through negotiation.

leonardjos

leonardjos wrote: »

The developer recently advertised the last of these from 420k range.

The ones for sale at 420k were townhouses, and I would prefer a semi. Here is the current listing on Daft - www.daft.ie/1317290 . This might not be a full up-to-date listing but it says there are 3 townhouses from 395k and 1 semi at 440k.

ntlbell

if you go to the developer and tell him your approved for 380k and ready to move today i'd say he would snap your hand off..

AARRRGH

Considering Delgany is in Wicklow, and the Irish economy is tanking with no sign of it ever "recovering", I would think in a few years 380k will be a good price for a 3 bed in Delgany.

quozl

I'd expect them to go a good bit lower than that.

Things are speeding up, not slowing down:
http://www.treesdontgrowtothesky.com/cache/daft_num_drops.png
http://www.treesdontgrowtothesky.com/cache/daft_weekly_change.png

And do you see any positive economic signs for Ireland in the medium-term?

Further job loses, large budget deficit forcing us to raise taxes during a recession, state guaranteed banks who have yet to write off the bad loans they must have, developers only staying afloat because the banks/government can't afford them not to, but yet can't prop them up for long, a huge housing over-hang.

Many people in negative equity situations combined with 400,000+ unemployed, and more job loses to come, mean that some of those unfortunates in negitive equity will intersect with the job losses and result in repossesions over the next few years.

Even if the government forces the banks to hold off on initiating reposessions for 12 months.

I could go on.

I'm sure the developer would be delighted to offload some of his exposure to a crumbling market to you for 380k!

If you'll be happy there for 10 years, and want to raise a family there, then fair enough. But don't go into this with the attitude that you'll be lucky to get one for 380K. The developer would be lucky to offload it for that. He's likely in dire need of cash-flow, and this house is not unique.