Why are people buying houses when prices are on the way down?

oceanclub

20goto10 wrote: »

Let me put it another way by using my own case as an example. I will not be dropping my price. There's room to haggle and thats it.

I'm just curious, but presumably you don't have to sell. What happens if prices continue to drop? Will you still hold tight?

P.

20goto10

oceanclub wrote: »

I'm just curious, but presumably you don't have to sell. What happens if prices continue to drop? Will you still hold tight?

P.

If there comes a point where the price becomes unrealistic compared to what else is out there then I will take it off the market and stay put.

spockety

20goto10 wrote: »

If there comes a point where the price becomes unrealistic compared to what else is out there then I will take it off the market and stay put.

URL?

20goto10

spockety wrote: »

URL?

Of me gaf? LOL I'm trying to sell the place the last thing I need is a public forum trolling it to death

spockety

20goto10 wrote: »

Of me gaf? LOL I'm trying to sell the place the last thing I need is a public forum trolling it to death

Worth a try

the_syco

TheCityManager wrote: »

am seeking your standard semi d type in North dublin..

I'm sure there are many houses which you can buy at the moment, but don't want to, as you're probably looking at houses in particular areas. As is everyone else. If a house appears, which is in a "good area", or maybe nearby their family home, people will bid for it regardless of the price. For example, you can get a semi d for about €179,000 in North Dublin, less after a bit of a haggle... or you could be waiting for a semi d in a better area. The price of houses in better areas won't drop as fast as houseswith with little or no facilities.

20goto10 wrote: »

Of me gaf? LOL I'm trying to sell the place the last thing I need is a public forum trolling it to death

...so you admit it's over priced?

Gurgle

TheCityManager wrote: »

to be honest I cant really afford a mortgage so need to buy wisely..

This seems a little.... silly.
Maybe you should hold off until you can afford a mortgage?
Whether through prices going down or your salary going up.

mathie

20goto10 wrote: »

Houses are worth what they are worth NOW. If you want to buy a house for 2012 prices I'm affraid you'll have to wait until 2012. It's very simple when you think about it.

I'm a buyer as well as a seller so I'm seeing both sides of the argument. I can tell you the property I'm selling is at the lowest its going to be. There is of course haggling room but the advertised price stays as it is. I'm also seeing that in many properties I'm viewing. I do realise there are many properties out there that are still vastly overpriced and will most likely be slashed in the coming months but I think it is no longer possible to make a broad generalisation that all property prices are over priced by X%.

I very much doubt it.
We're in it for the long haul thanks to NAMA.

Senna

Gurgle wrote: »

This seems a little.... silly.
Maybe you should hold off until you can afford a mortgage?
Whether through prices going down or your salary going up.

How is it silly? I'm guessing he has a lump sum to play with and is waiting till that amount buys the house that meets all his requirements. Anything but silly to me, if i could have got my home "mortgage free" i'd be a happy camper.

Also he may not be able to get a mortgage because of age, health, unstable work, so a sub-prime lender would be his only option and that's really no option at all.

di2772

the_syco wrote: »

you can get a semi d for about €179,000 in North Dublin, less after a bit of a haggle

Where? And how many rooms?

the_syco wrote: »

...so you admit it's over priced?

Thats not what the guy said. :rolleyes:

TheCityManager

Gurgle wrote: »

This seems a little.... silly.
Maybe you should hold off until you can afford a mortgage?
Whether through prices going down or your salary going up.

Im public sector...no salary rises no promotions just probably less money for several years anyhow...just ok with what I earn now (without paying rent or mortgage..) Got a large voluntary reduno a few years ago and made quiet a few bob selling my last house a couple of years ago....
So what I have is all I have...and will have for the foreseeable ..

So senna is right - I got to ensure I get the best value I can...

Carawaystick

If you buy the freehold on a home, you have security of tenure. You can't be evicted so the landlord can allow a close family member live there; you can do what you like within the law, not what some other people in the management company decide to allow you do in your home like a leasehold.

Gurgle

TheCityManager wrote: »

Im public sector...no salary rises no promotions just probably less money for several years anyhow...just ok with what I earn now (without paying rent or mortgage..) Got a large voluntary reduno a few years ago and made quiet a few bob selling my last house a couple of years ago....
So what I have is all I have...and will have for the foreseeable ..

So senna is right - I got to ensure I get the best value I can...

Ah, sure.
I missed the lump sum part.

kmick

I am currently selling and hopefully buying. When I bought my current home in 2001 it was a perfect size. Now I have 2 kids its too small. That is why I am moving. The markets may be going down all over the place but certain areas in Dublin where we are looking are starting to stabilise. My own house is sale agreed in just over 3 months on the market and over 20 viewings. So what I am seeing is houses in the right areas (location, location, location) are selling for about 10% below asking where they are priced correctly in the first place, in other words are simlar to equivalent property in that area.

I am however perfectly willing to accept that houses could drop a lot more but what I am sure of is that houses in good locations will always be in demand. Someone once told me "The day you buy is the day you sell" and I think he was right.

Freddie59

My two cents:

Interesting to see how the same ole posters take the plunging prices personally;):D, almost willing them to reinflate. Not gonna happen. For a long, long, time. Our experience:

Sold our house in November 2008. €170k equity from sale. Offered €200k for the house we were renting in December 2008 (on at €265k at the time). Told to politely eff off.

One of these sold for €180k in the last month. We bought a house in August for €175k. It had just been put on at €195k (others in the estate on at €290k-ish). Sold in four days.

Reasons we bought?

1. The house was being sold at March 2000 prices.

2. Worry over security of cash, given the current banking crisis.

3. The house was in perfect condition - executor sale.

4. The house is in a small 100-home estate where ouses don't often come up for sale.

Yes, we probably could have waited another, say, 12 months. But the price, location, and cash security were the things that swung us.

spockety

kmick wrote: »

I am however perfectly willing to accept that houses could drop a lot more but what I am sure of is that houses in good locations will always be in demand. Someone once told me "The day you buy is the day you sell" and I think he was right.

Good houses in good locations will always be in demand, but I get the impression that the people who constantly say this also believe that good houses in good locations exist in some sort of immunity bubble, where no outward forces have any impact on them.

mathie

spockety wrote: »

Good houses in good locations will always be in demand, but I get the impression that the people who constantly say this also believe that good houses in good locations exist in some sort of immunity bubble, where no outward forces have any impact on them.

I'm selling in a 'good' location.
We're sale agreed at over 30% down on peak prices.
So no immunity bubble here
Although a lot of houses are listed at the 2007 prices or 2007 prices less a couple of percent.
Crazy.

kmick

spockety wrote: »

Good houses in good locations will always be in demand, but I get the impression that the people who constantly say this also believe that good houses in good locations exist in some sort of immunity bubble, where no outward forces have any impact on them.

Immunity no - most things in my area are down 30-40%. If you bought in 2007 that is going to hurt a lot.

spockety

So it's taken for granted now that even 'good' areas are down by 30-40% from the prices achieved in 2006/2007, yet we are supposed to , for some reason that simply cannot be quantified, believe that we are now at the point where these 'good areas' are going to stop crashing while everything else continues to fall away?

It's all very wishy washy for me I'm afraid.

We were told there would be no crash.
We were then told there would be a soft landing.
We were then told there would be a slight correction.
We were then told a necessary correction is underway.
We were then told repeatedly that the correction is nearing it's end.

All of the above have been wrong, and were never actually backed up with any sane economic or reasonable argument as to why they should be taken as being true.

I have seen no evidence which would lead me to believe that we are near bottoming out in sales prices in 'good areas'.

I am presuming here that people referring to good areas are talking about the Irish Riviera that is most places with an even numbered post code.

kmick

spockety wrote: »

So it's taken for granted now that even 'good' areas are down by 30-40% from the prices achieved in 2006/2007, yet we are supposed to , for some reason that simply cannot be quantified, believe that we are now at the point where these 'good areas' are going to stop crashing while everything else continues to fall away?

No one knows what is going to happen in the future further price falls would seem logical. But I also said the reason I am moving is that my current house is too small. Not disregarding the fact a house purchase is your biggest purchase; For some people like me what may or may not happen in the future is no disincentive to buying a family home in a nice area which means I dont have to sit on a box of childrens bricks to eat my dinner due to lack of space. The fact I will probably be there for 10 years leads me to believe that when I go to sell I'll probably be ok. People get themselves in a spin because they cant possibly imagine that recessions come to an end in the same way people cant imagine a boom coming to an end. Also the value of money declines fast. So my 500k mortgage seems like a hell of a lot now just like my dads 8k mortgage seemd like a lot 21 years ago.

Salvelinus

spockety wrote: »

So it's taken for granted now that even 'good' areas are down by 30-40% from the prices achieved in 2006/2007, yet we are supposed to , for some reason that simply cannot be quantified, believe that we are now at the point where these 'good areas' are going to stop crashing while everything else continues to fall away?

It's all very wishy washy for me I'm afraid.

We were told there would be no crash.
We were then told there would be a soft landing.
We were then told there would be a slight correction.
We were then told a necessary correction is underway.
We were then told repeatedly that the correction is nearing it's end.

All of the above have been wrong, and were never actually backed up with any sane economic or reasonable argument as to why they should be taken as being true.

I have seen no evidence which would lead me to believe that we are near bottoming out in sales prices in 'good areas'.

I am presuming here that people referring to good areas are talking about the Irish Riviera that is most places with an even numbered post code.

Bertie Aherne wants you to commit suicide, seriously those 5 predicitions should be thrown at every "economist"/vested intrest/commentator.

irish_bob

Freddie59 wrote: »

My two cents:

Interesting to see how the same ole posters take the plunging prices personally;):D, almost willing them to reinflate. Not gonna happen. For a long, long, time. Our experience:

Sold our house in November 2008. €170k equity from sale. Offered €200k for the house we were renting in December 2008 (on at €265k at the time). Told to politely eff off.

One of these sold for €180k in the last month. We bought a house in August for €175k. It had just been put on at €195k (others in the estate on at €290k-ish). Sold in four days.

Reasons we bought?


1. The house was being sold at March 2000 prices.

2. Worry over security of cash, given the current banking crisis.

3. The house was in perfect condition - executor sale.

4. The house is in a small 100-home estate where ouses don't often come up for sale.

Yes, we probably could have waited another, say, 12 months. But the price, location, and cash security were the things that swung us.

sounds like a good move and one that you gave consideration to

bunkbedman

Stop snivelling do you know how lucky to have the cash price of an house.. no mortgage phew!!
Look at a houe in your budget and make an offer stop sitting on the side lines waiting for more good fortune.
If you see a house say priced at €400k down from €600k ask the estate agent for the vendors very best cash price state clearly that you wont entertain cr*p that you have shortlisted 5 properties this being one and if they are realistic you will close in 21 days cash purchase ..... expect further 10 - 15% drop. If not offer 20% lower most importatly
STOP MOANING....and rememebr there could be an owner who owes a mortgaeg more than you wish to pay for the house... theirs my friend is also a hard place... you being the rock

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....

oceanclub

bunkbedman wrote: »

STOP MOANING....and rememebr there could be an owner who owes a mortgaeg more than you wish to pay for the house... theirs my friend is also a hard place... you being the rock

Uh, so it's his fault someone else is in negative equity?

Are you drunk?

P.

bunkbedman

Dont be a schmuck thats not what I said.....He wants all house prices to fall my point is, assuming your just thick or agressive, is not everybody can drop their house price the floor is determined by their bank borrowing..
You are not being helpful grow up!

The_Conductor

Calm down folks. If you disagree with what someone posts- refute the post- but don't get personal.

S.

Freddie59

irish_bob wrote: »

sounds like a good move and one that you gave consideration to

Sure did, Bob. Don't regret it for a minute.:)

jhegarty

Op,

You seems to have some inside information. What date will prices start to rise again ?

Senna

Couple of months ago i was talking to a fella in work that bought in 2006 in the NW. He bought the house for 475k, at the time the advertised price was 420k and i thought most of those house sold for 420-430k max.
It was a small development, only 4 houses in a highly regarded area.

When the market was booming, a lot of "Prestigious" houses was advertised lower, because the EA knew it would generate interest and the price would go up when bidding began.
So its worth remember that the 2006 advertised prices for "sought after areas" might be lower than the sale prices, so the % drop in price now might not seem as much as it really is.

bullvine

There is so many stories out there, you really need to decide if you wanna risk it, or not. I bought a house recently which was probably 50% of the value of it in 2007 but it might drop another 20-40% but thats the risk you have to take. The reason I bought it was because I wanted to get settled and felt it was a good deal.