Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Why are people buying houses when prices are on the way down?
Options
-
07-09-2009 1:45pm#1
Comments
-
-
TheCityManager wrote: »I've been waiting and watching to buy a house..I'm a cash buyer (no mortgage..) and am seeking your standard semi d type in North dublin..I am renting at mo whilst I've been watching prices slide...to be honest I cant really afford a mortgage so need to buy wisely..
Although prices are still sliding (slowly enough though..) I see that houses are still being snapped up...
Why is this ? Why are people still paying more than what houses are REALLY worth???
I'm beginning to think I'd better buy now rather than wait till next spring....
i bought first and foremost because i have a young family. we bought a family home, we will never move. maybe it would have been cheaper in 6 months, but we've bought for life. in twenty years time, i'll have no mortgage, no rent, and no concerns about what it's worth!
rent is dead money, and so is bank interest/price falls. either way you're stuffed!!!
my job is secure, but my wife's isn't. we calculated on the basis of my wage being the only one coming in, if she works it's a bonus.
we had particular requirements, and we saw a house that fitted the bill precisely. who knows if another one would come along? in 4-5 months of looking, we only saw one other house that we even offered on.
what is "really worth" as a term? (in a general sense, not being smarmy). if someone will pay X for a house, then that's what it's really worth to them.
i watched the propetypin.com for a good while, and for the last month or so, it seems to me that price drops are happening less frequently and for smaller amounts. it used to be the case that every day there'd have been dozens of drops (talking about the dublin south forum, i wasn't watching the others). this would suggest to me that most houses are bottoming, or at least beginning to reach a point that they'll sell. there's always some chancer still trying to get 2006 prices, but they'll be waiting.....
also, people talk about "the property market" as though all property in all areas is the same. theres a different market for one bed apartments on the outskirts of athlone and a semi-d in a decent area. my gut instinct is that the big falls are in the former, and the smaller falls are in the latter. (by smaller i mean 20-30-ish% from peak. still significant, but not the huge falls we see trumpeted in certain places). i have no idea what's happening with apartments, as i had no interest in one i haven't watched that bit of the market at all. i keep reading of tens of thousands of empty units, so i'd be wary if i was in the market for one of those.
i made a decision based on MY circumstances, that suited me, and that best fitted my situation. i was aware that the economy is struggling, i was aware that prices are falling, i took account for future interest reate rises, but given all that, my decision was the best for me. can't really speak for anyone else!0 -
-
i bought first and foremost because i have a young family. we bought a family home, we will never move. maybe it would have been cheaper in 6 months, but we've bought for life. in twenty years time, i'll have no mortgage, no rent, and no concerns about what it's worth!
rent is dead money, and so is bank interest/price falls. either way you're stuffed!!!
So was buying your house now :pac:
edit: oh yeah and lol @ "maybe"0 -
-
Advertisement
-
-
did you read the full sentence? i also mention price falls. it was a tongue in cheek comment. i realise flippancy doesn't translate well to the screen, so sorry about that. come back to me in 20 years when you're still paying rent.
I'm not paying rent, but i wouldn't buy at the worst time either
i don't claim to be able to tell the future, and maybe you shouldn't either!
Its fairly obvious prices are dropping, in 6 months if house prices have risen come back to me and i'll give you a tenner0 -
-
-
Fighting Irish wrote: »I'm not paying rent, but i wouldn't buy at the worst time either
i think you'll find that the worst time was about two/three years ago!Fighting Irish wrote: »Its fairly obvious prices are dropping, in 6 months if house prices have risen come back to me and i'll give you a tenner
i don't disagree with you in general, if you were to average the market. i think people need to talk more about specific sections of the market, rather than "property" as though it were one entity. (see my comment about apartment on the outsirts of athlone versus semi-d in a good established area)
not too long ago it was "fairly obvious" that property was a nirvana, a way to endless riches, that the paradigm had shifted, etc.
anyway, this has been done to death on lots of other threads! i just wanted to give my two cents about why i bought now. i certainly didn't go in blindly, nor was i charmed by a smooth salesman or a newspaper article. my circumstances made it the best decision for me. that's about the best answer i can give.0 -
Advertisement
-
-
-
-
i watched the propetypin.com for a good while, and for the last month or so, it seems to me that price drops are happening less frequently and for smaller amounts. it used to be the case that every day there'd have been dozens of drops (talking about the dublin south forum, i wasn't watching the others). this would suggest to me that most houses are bottoming, or at least beginning to reach a point that they'll sell. there's always some chancer still trying to get 2006 prices, but they'll be waiting.....
I wouldn't take the behaviour of posters on the Sth Dublin property drops forum on the 'pin to mean anything at all. Their behaviour has changed as the years have gone by.
In 2007, a price drop was of huge significance. In 2008, as they ramped up, people on that forum revelled in posting as many of them as they could. Now in late 2009, prices are still dropping, but it's boring now, no big deal. There are so many of them and they are happening so often that it's not really worth posting. Besides which, there is always irishpropertywatch.com and treesdontgrowtothesky.com to do it automatically.
Here's a graph from one of those sites. As you can see, price drops are still happening, and quite a lot of them. Look at the >20% drops being seen this year, etc.
0 -
-
-
I wouldn't take the behaviour of posters on the Sth Dublin property drops forum on the 'pin to mean anything at all. Their behaviour has changed as the years have gone by.
In 2007, a price drop was of huge significance. In 2008, as they ramped up, people on that forum revelled in posting as many of them as they could. Now in late 2009, prices are still dropping, but it's boring now, no big deal. There are so many of them and they are happening so often that it's not really worth posting. Besides which, there is always irishpropertywatch.com and treesdontgrowtothesky.com to do it automatically.
Here's a graph from one of those sites. As you can see, price drops are still happening, and quite a lot of them. Look at the >20% drops being seen this year, etc.
werd, the only thing slowing down the price drops are the people who think they're getting a bargain or that they found their "dream home"0 -
-
-
-
Advertisement
-
I wouldn't take the behaviour of posters on the Sth Dublin property drops forum on the 'pin to mean anything at all. Their behaviour has changed as the years have gone by.
In 2007, a price drop was of huge significance. In 2008, as they ramped up, people on that forum revelled in posting as many of them as they could. Now in late 2009, prices are still dropping, but it's boring now, no big deal. There are so many of them and they are happening so often that it's not really worth posting. Besides which, there is always irishpropertywatch.com and treesdontgrowtothesky.com to do it automatically.
Here's a graph from one of those sites. As you can see, price drops are still happening, and quite a lot of them. Look at the >20% drops being seen this year, etc.
Reason- Its automated by scripts.
In 2007 & part '08, it was manual searching. Once the daft scripts like IPW & PropertyBee came, there was no real incentive to post drops as they are now contained in reports and visual to the eye on Daft.0 -
TheCityManager wrote: »Hence when I've been watching a specific house as it drops in value (hoping that it goes a wee bit more when I could afford it..) I'm disappointed when it's sold...which is a natural reaction..
Your wondering why people buy now, but you are watching houses and hoping for another "wee bit more" of a drop then you'll buy it???
I can understand if someone thinks houses have another 50% to drop and so are waiting and maybe asking the same question. But your post sounds like your close enough to buying?LOL
Ill make a bet with you your wrong?
The old "houses cant possibly sell for less than their worth"?
The clearing price market activity happens in all markets, seller and buyer agree to a price both are happy with, if the seller does not reach a clearing price, a price drop is needed to stimulate investors (buyers).
Why are normal market rules that apply to all other markets in Ireland not applicable to houses??
Answer;The rules do apply, it just takes some people longer to realise0 -
-
-
-
-
-
-
-
Advertisement
-
Advertisement