House prices yet to fall in Galway county + city.

Xiney

padi89 wrote: »

Highly desirable because its close to a hospital ? From what i am aware Merlin doesn't have an A&E and im pretty sure Bon Secours doesn't either. The Blackrock has but its private with limited opening hours, correct me if im wrong?
The chances are if you needed a hospital fast or called an ambulance you'd be going to the UCHG. If your living in a city a hospital is never far away, i don't see it as an advantage as being right next door.

In relation to traffic the east side is as bad as the west if not worse. The huge advantage the east side has is access to the motorway but traveling to town takes about the same amount of time as it does in the west.

Yeah but I think what churchview was getting at was the fact that a doctor may purchase the house in order to be close to work.

Mrs OBumble

Fozzie Bear wrote: »

I am absolutely amazed that people are on this thread defending the price of housing in Galway. Its just nuts, has the last ten years of madness not taught you anything at all?

You are either a home owner who bought in the past few years and find yourself in neg. equity and can't face facts or else you are still a sheep just following the media, vested interests, auctioneers and others as they try to fleece you financially.

Fozzie Bear, just to be clear, I'm not defending Galway's house prices, I do think they're still over-priced. But IMHO the OP's assigned value for the first item on his list was way too low given the very desirable location.

Re your own situation, I can sympathise: I own a property overseas (was fully paid off, I'm now drawing on it again to live on), but unless I really hit the big time somewhere don't believe that I'll ever own in this country - it's just too late in my life to save up the sort of deposit that I'd need to make buying viable ( I wouldn't buy with less than a 20% deposit, otherwise you just end up paying wayyy to much in interest.)

Discodog

A house in Brooklawn has just sold for €600,000 so people are still willing to pay a fortune.

billybigunz

Yields in Galway have been insanely low for hte last 6 years that I've known the place. Gives you an insight into the business acumen of most of the residents.

Its all about location, location, location and supposedly this wet, gridlocked town is the place to be.

snubbleste

Galway property prices are still insane.
It could be there is a link between this and our favourite TD Frank Loadsa gaffs Fahey

ei.sdraob

@OP those prices are madness

but there are few bargains on daft that I can see right now

if you willing to go down the self-build route you can save a small fortune (think 60-100 per sq foot) since labour has gone down by huge amount, and materials gone down somewhat as well

and of course you can ensure and supervise that its finished to a good standard to latest regulations, none of that shoddy workmanship thats gone into houses build in estates in last decade

Bobeagleburger

Galway prices have a long long way to fall alright.

Was reading a peice recently enough by David Mc Williams who said that prices have a long way to fall yet in Galway in comparison to other parts of the country.

If I seen an asking price at 220k I'd be inclined to offer at least 20% lower.

I'd hazard a guess that prices will continue to fall for another 3 to 4 years at least.

Hopefully.

dloob

A the height of the boom it was reported that Galway had the most expensive houses in the country when adjusted for local income levels.
Doesn't look like much has changed.

As for the Merlin Lane house well besides being a bit ugly, I've seen houses identical to it on daft that went sale agreed recently after reducing asking prices well into the 300s.

As I've seen said elsewhere you can choose when to sell your house or what price to sell it at.

Madame Razz

Discodog wrote: »

A house in Brooklawn has just sold for €600,000 so people are still willing to pay a fortune.

That's a heck of a lot less than what they were going for there 18months ago!!

It's still a decent price tho, but then it's Brooklawn. A house in Pollnarooma went for 800k not so long ago and they are knocking it and rebuilding a completely new house! But I don't think you can equate estates like Brooklawn and Pollnarooma with the rest of the city. They are always going to be in a different league pricewise simply because of their location, and the fact that there will never be more houses in either than there are now.

Pricewise in Galway generally tho I think there are interesting times ahead. When the mortgage rates do eventually increase as is being predicted it really is going to put the squeeze on a high proportion of people and they will be forced to sell; even to date there have been a few properties that have sold for a very low price at auction because the buyer had to sell. That trend is definately going to become more common in the next year around the city I would think.

Rent wise tho, the traditional 'renting' areas in the city are holding their rates so long as the property is in decent condition, and those that aren't are being rented at a much lower rate or are empty; which is only fair really. I don't think the same can be said of the more outlying areas tho regardless of the property's condition.

fergiesfolly

Judging from stories I've heard from friends and family, the final selling price is nowhere near the asking price. Quite a lot of developers and private sellers are going to come under pressure to sell well below the asking price when interest rates rise. Anyone buying now should put in a low bid and hold their nerve. And walk away if necessary. Theres plenty of property out there with sellers willing to negotiate a realistic price.

?Cee?view

JustMary wrote: »

Fozzie Bear, just to be clear, I'm not defending Galway's house prices, I do think they're still over-priced. But IMHO the OP's assigned value for the first item on his list was way too low given the very desirable location.

Agree completely with what JustMary says above.

Just because I think that the values that the OP has pulled out of thin air are currently ridiculous (and s/he has yet to justify them), doesn't mean that I'm defending house prices in Galway in particular. Undoubtedly they still have signficant downside, but probably not in all sectors. You could argue that yellowpack housing (estates, four/five bed houses) are oversupplied and still over priced, but at the premium level, there is still quite a bit of demand.

The example of the house in Pollnarooma which sold for 800k (and was then demolished) is apt. Last year a house sold on Kingston Road for either 865k or 895k (can't remember which) and it was also demolished. I know of some houses in this bracket and well above which have been sold recently without even being advertised. Some auctioneers around town have lists of customers waiting for what they feel is the "right" house or site, and they'll pay for this. Homeowners at this level are being approached to see if they will sell.

One thing...there's a certain smugness that's creeping into these housing discussions that's almost as irritating as the smugness which existed a few years ago, when people delighted in telling you over a pint how much their house had gone up in value over the previous month! Now, it seems to be in vogue to laugh and pour scorn at people trying to sell their houses at a price which will allow them to settle their debt; some lovely vultures out there waiting for the chance to buy a house at a knock down price. Then presumably they'll be the people down the pub rubbing others noses in it. Lovely.

testicle

I see none of you lot have ever been in the Accomodation & Property forum!

s_carnage

Buglim wrote: »

Did i say Galway City, wait no I didn't. Why so upset, buy at the height of the boom did we???

Look my friend, if you want the truth check out the 2 sites on the end of my lasyt mail. better still read a mail properly and fully before you mouth off.

Ok my bad. Thought you meant the two cities. Was still a bit surprised that there is more in Galway county than Dublin county but i suppose with all the estates empty in commuter towns it does add up.

?Cee?view

s_carnage wrote: »

Ok my bad. Thought you meant the two cities. Was still a bit surprised that there is more in Galway county than Dublin county but i suppose with all the estates empty in commuter towns it does add up.

Galway County is a complete trainwreck when it comes to housing. There's absolutely no way you can compare it to the City. There are whole tracts of East Galway (County) with tumbleweed blowing around empty estates. My heart goes out to people who've bought in these god-awful places.

Madame Razz

churchview wrote: »

The example of the house in Pollnarooma which sold for 800k (and was then demolished) is apt. Last year a house sold on Kingston Road for either 865k or 895k (can't remember which) and it was also demolished. I know of some houses in this bracket and well above which have been sold recently without even being advertised. Some auctioneers around town have lists of customers waiting for what they feel is the "right" house or site, and they'll pay for this. Homeowners at this level are being approached to see if they will sell.

Exactly, this has happened with other houses in and around the same area too Kingston/Pollnarooma which had bigger sites and they have gone for even more money, then to be demolished. There will always be a demand for houses in those areas regardless of the economic situation; so they will always command a high price. Nowhere near as high as previously, but still a high price all the same.

One thing...there's a certain smugness that's creeping into these housing discussions that's almost as irritating as the smugness which existed a few years ago, when people delighted in telling you over a pint how much their house had gone up in value over the previous month! Now, it seems to be in vogue to laugh and pour scorn at people trying to sell their houses at a price which will allow them to settle their debt; some lovely vultures out there waiting for the chance to buy a house at a knock down price.

Agreed. I know a number of people with attitudes like this, and I find it very vulgar; amongst other things.

Buglim

s_carnage wrote: »

Ok my bad. Thought you meant the two cities. Was still a bit surprised that there is more in Galway county than Dublin county but i suppose with all the estates empty in commuter towns it does add up.

Apologies this side also, as my reply was rude.:o

funnyname

fergiesfolly wrote: »

Judging from stories I've heard from friends and family, the final selling price is nowhere near the asking price. Quite a lot of developers and private sellers are going to come under pressure to sell well below the asking price when interest rates rise. Anyone buying now should put in a low bid and hold their nerve. And walk away if necessary. Theres plenty of property out there with sellers willing to negotiate a realistic price.

An Irish equivalent of this site would be fantastic

http://www.houseprices.co.uk/

Although I doubt we'll ever see one

?Cee?view

funnyname wrote: »

An Irish equivalent of this site would be fantastic

http://www.houseprices.co.uk/

Although I doubt we'll ever see one

That site is linked to HM Land Registry and HM Land Registry record house prices in such a way that when checking the title (legal ownership details) of properties online, you can see what they last sold for.

The Irish Land Registry doesn't make the same information available. I'm not sure if they even collate the information, even though the documents that are sent into them to register title certainly give this information.

Webbs

Fozzie Bear wrote: »

I completely agree OP that prices in Galway are out of whack with elsewhere. I would however question some of your valuations above. Maybe a little OTT for some of them.

I have been looking at buying a house for the past 2 years and on several occasions have come across the tag line "Galway is different" from a host of auctioneers when I questioned their valuations compared to similar in Cork, Limerick or Dublin suburbs. Different how exactly?? Has Galway some how escaped the massive crash in property values since the bubble burst? Does the recession cease to exist once you hit the Shannon? Has there been no redundancies, lay offs, pay cuts, tax hikes applied to the good people of Galway? What utter boll@x peddled by vested interests and auctioneers. The good times of people falling for their spin and rhetoric are long gone and they need to get a grip and accept prices simply have to drop.

Different in the same way that in the UK property in Bath is more expensive than Bristol, or Brighton more expensive than Worthing. It is not just all about the economy there is always an X factor about some places. We may not agree with it but seems that Galway does have it.

There is just absolutely no doubt what so ever that house prices have not come down anywhere near enough in Galway (or Ireland for that matter) yet. Banks are now giving out mortgages of approx 4.5 times your combined salaries. For myself (private) and my missus (public) that equals a mortgage of approx 250-275,000.

How many of the above houses fall within that? We are an average couple with an average industrial wage and first time buyers. We (first time buyers) are the only people looking for homes now and if the max amount of money we are (lucky enough to be) given is €275,00 then what has got to give here?? The banks are not handing out stupid amounts of money anymore so the prices HAVE to drop more. HAVE TO!

As a first time buyer in a UK city generally people buy 1-2 bed apartments not 3-4 bed houses. Here first time buyers expect at least a 3bed semi. So that would mean you would not be an average first time buyer in the UK.
This has been a factor in some of the crazy house building demographic in Galway/Ireland. So maybe a sea change in people perception of where they start on a property ladder needs to happen in Irish cities.
What it may have done for those in these 3bed 'starter' homes is 'protect' those who are in neg equity from having to move for more space,( if they are still able to have jobs etc. a big if I know) this was a major problem for the UK in the mid 90s following their last property bust.
Which is why I think there will be perversely in time to come a shortage of property in 'desirable' areas and there will be a real 2 tier pricing system in Galway and Ireland for a long time to come.

The other potential buyers out there are ones who already own a home but they cannot sell, or at least not at a realistic price they would accept because people are still deluding themselves that prices are going to rise again. They are not, the only way is down its a matter of basic and very simple economics.

If people are in neg equity which would be a very large percentage of those looking to sell, then they are not as I mentioned above going to sell low, as they cannot afford to take a lower price, its not delusional just a harsh reality.

People really need to start educating themselves and reading sites like the propertypin, David McWilliams or download the propertybee add on for Daft.ie. This will show you the price history of any house on Daft and the length of time it has been on the market.

I am absolutely amazed that people are on this thread defending the price of housing in Galway. Its just nuts, has the last ten years of madness not taught you anything at all?

You are either a home owner who bought in the past few years and find yourself in neg. equity and can't face facts or else you are still a sheep just following the media, vested interests, auctioneers and others as they try to fleece you financially. Either way if you are still stupid enough to believe house prices in Galway are realistic then you deserve everything you have coming to you...

Oh and I dont disagree with your views that property prices are overinflated its just having seen one property crash and subsequent rise in the UK, I am being a bit of devils advocate here.
There are very few if any people out there who dont have a vested interest one way or the other, from yourself as a potential buyer to someone in a house on neg equity, to second home investors to someone wanting to sell a book etc.
It will be a long while sorting itself out in Galway and will produce in the long term I think even more diversity in prices than existed before depending on location in the city/county

KevR

Fozzie Bear wrote: »

There is just absolutely no doubt what so ever that house prices have not come down anywhere near enough in Galway (or Ireland for that matter) yet. Banks are now giving out mortgages of approx 4.5 times your combined salaries. For myself (private) and my missus (public) that equals a mortgage of approx 250-275,000.

How many of the above houses fall within that? We are an average couple with an average industrial wage and first time buyers. We (first time buyers) are the only people looking for homes now and if the max amount of money we are (lucky enough to be) given is €275,00 then what has got to give here?? The banks are not handing out stupid amounts of money anymore so the prices HAVE to drop more. HAVE TO!

It's stuff like this which really alarms me. An average working couple (working in Galway!!!) is not able to afford to buy a house here.

Some people I know ended up buying houses 25-30 miles outside the city during the boom because they couldn't afford to buy in the city despite being born here, growing up here and having decent jobs here. It seems very wrong and it worries me (I'm just about to graduate college and I really don't want to end up buying a house outside Galway City at some point in the future if I am working in the city; I have lived here all my life). It's not like I would be expecting an amazing house in an amazing Galway City location for a dirt cheap price; I know buying a house will be a financial struggle but I would like to be able to actually afford one in the city I am from if I have a decent job here.

ScumLord

The difference is Galways a tourist town, it's not dependent on the global economy as much as Dublin would have been. As long as people keep wanting to go to Galway it's going to remain expensive. It's a town in demand.

Webbs

KevR wrote: »

It's stuff like this which really alarms me. An average working couple (working in Galway!!!) is not able to afford to buy a house here.

Some people I know ended up buying houses 25-30 miles outside the city during the boom because they couldn't afford to buy in the city despite being born here, growing up here and having decent jobs here. It seems very wrong and it worries me (I'm just about to graduate college and I really don't want to end up buying a house outside Galway City at some point in the future if I am working in the city; I have lived here all my life). It's not like I would be expecting an amazing house in an amazing Galway City location for a dirt cheap price; I know buying a house will be a financial struggle but I would like to be able to actually afford one in the city I am from if I have a decent job here.

Thats why i pointed out the difference about peoples mindset here and the UK. Cities in the UK have a much higher proportion of apartments which would be 'first time' buying territory. Its not really considered an option in Galway. Its the downside of Galway being a popular city for people to move to so you are competing with locals and blowins.
I would imagine you would have same situation in any tourist or popular place. I cant imagine there would be too many people could afford a house in Roundstone for example as a first time buyer.

musharra

churchview wrote: »

So what about a hello? Or maybe an explanation of why you consider it's a good idea to encourage likely already struggling homeowners to accept such significantly lower sale prices which would likely leave them with a nice chunky balance to make up between the difference of what they owe on, and what they get, for their house?

Give us a clue - what are you basing your "what they're worth" values on? Guesswork?

Hello, if you want to sell, drop your price. If you dont, dont.

I not basing the valuations on anything. Its what I'd think they're worth. I could ask you and similar sellers the same question
what are you basing your asking price on??

In relation to the merlin park house...I'd agree with JustMary, this one is probably worth a bit more...but not a lot.

I'd also agree with 'Webbs' suggestion that there will be more diversity in prices than existed before depending on location in the city/county.

?Cee?view

musharra wrote: »

Hello, if you want to sell, drop your price. If you dont, dont.

Problem here is you're ignoring the reality that most people don't really own their home. The bank does, and the banks want their money back if you sell. So most people don't have the option to drop their price.

musharra wrote: »

I not basing the valuations on anything.

Thanks for clearing that up!

musharra wrote: »

I'd also agree with 'Webbs' suggestion that there will be more diversity in prices than existed before depending on location in the city/county.

Agree completely. Properties in outlying county areas will be very badly hit.

musharra

churchview wrote: »

Just because I think that the values that the OP has pulled out of thin air are currently ridiculous

Why are they rediculous? ..they're only worth what someone is willing to pay for them.

The valuations in the OP are what I think they're worth.

The asking is whats ridiculous!...they're not made of gold....just timber,concrete, copper, slate,..

Fozzie Bear

Webbs wrote: »

Different in the same way that in the UK property in Bath is more expensive than Bristol, or Brighton more expensive than Worthing. It is not just all about the economy there is always an X factor about some places. We may not agree with it but seems that Galway does have it.

We definitely won't agree on that one Webbs;). Galway does not have an X factor anymore. What Galway has are canny auctioneers who have spun this line that Galway is different for years and as a result prices were ahead of the pack. There may have been an argument made for the X factor back in the good ould days when demand/hype out stripped supply in Galway. But thats not the case anymore and there is no reason why prices should be any higher here then the rest of the country.

Webbs wrote: »

As a first time buyer in a UK city generally people buy 1-2 bed apartments not 3-4 bed houses. Here first time buyers expect at least a 3bed semi. So that would mean you would not be an average first time buyer in the UK. This has been a factor in some of the crazy house building demographic in Galway/Ireland. So maybe a sea change in people perception of where they start on a property ladder needs to happen in Irish cities. What it may have done for those in these 3bed 'starter' homes is 'protect' those who are in neg equity from having to move for more space,( if they are still able to have jobs etc. a big if I know) this was a major problem for the UK in the mid 90s following their last property bust. Which is why I think there will be perversely in time to come a shortage of property in 'desirable' areas and there will be a real 2 tier pricing system in Galway and Ireland for a long time to come.

The starter home and property ladder. Two titles that always bugged me. Again maybe there could be an argument made for them back in the day (which they were used to create hype and hysteria) but not now. What happens exactly if myself and my missus buy a "starter" 2 bed apartment tomorrow? We will be in negative equity within months and that way for years to come. Maybe 10+ years. Do we gamble that prices will rise within the next decade wait for 10 years so we can sell our starter at a profit/break even, buy a 3/4 bed, get married and start a family? No we don't, we move directly to step two on the "ladder" and buy our home where we will raise our family, live our lives and retire in. Its nothing to do with keeping up with the Jones's or having a fancy home. Its reality for us.

Webbs wrote: »

If people are in neg equity which would be a very large percentage of those looking to sell, then they are not as I mentioned above going to sell low, as they cannot afford to take a lower price, its not delusional just a harsh reality.

Nope its delusional. Harsh reality is that prices have to and WILL fall a lot more. The fact that the vendor is up to theirs eyes in debt has nothing to do with it. The market, economics and Banks will force this to happen. Wait until the Government imposed moritorium runs out later the year and Banks start repossessing houses. If you see the house beside you being sold for 100g when you are still looking for 350 two years after you put your house up for sale the harsh reality of the situation is going to smack you in the face then. Harsh and all as it is people should be cutting their sale price NOW and selling because in another 2/3 years time the price will have gone through the floor completely and they will be a lot worse off.

There is no Schadenfreude to what I am saying here either. I know plenty of people in all sorts of trouble and but for the grace of God and a cautious nature I would have been one of them too and looking into the abyss now.

?Cee?view

musharra wrote: »

Why are they rediculous? ..they're only worth what someone [Not just you Musharra] is willing to pay for them.

Because a sale is predicated on at least two people agreeing. A buyer and a seller. Unless you are the buyer of all of the seven houses listed, and have got the sellers to agree to sell them to you at such cut prices, then the "valuation" that you've provided us with is only a personal opinion of what they are worth to you, rather than a considered opinion of market value. I would submit that it is unlikely that a seller would sell at the price that you've suggested, for the reasons that I've already stated.

I wouldn't cross the road to buy a pair of Jimmy Choos shoes for €400. I consider that price to be rediculous ridiculous. However, I'm sure that Mr. Choo incurs costs in making his shoes and has some corporate debt tied up in his shoes.....so let's say he needs to sell each pair for €200 to break even (i.e. clear the debt on each paid of shoes). I think €400 or even €200 is a crazy price for Jimmy Choos, so I'm only willing to pay €100.

Therefore, by your logic, the shoes are worth only €100, even though that's only my own personal opinion.

?Cee?view

Fozzie Bear wrote: »

We definitely won't agree on that one Webbs;). Galway does not have an X factor anymore. What Galway has are canny auctioneers who have spun this line that Galway is different for years and as a result prices were ahead of the pack. There may have been an argument made for the X factor back in the good ould days when demand/hype out stripped supply in Galway. But thats not the case anymore and there is no reason why prices should be any higher here then the rest of the country.

I can only comment on personal experience on this one. I know many people who have been approached to sell and I know people who have made such purchases. Galway has an oversupply of low cost (relatively) estate housing and a distinct undersupply of "higher end" properties. Outside of Taylor's Hill, some parts of Salthill and Kingston, there are few areas that fit this yet a demand remains.

Fozzie Bear wrote: »

Nope its delusional. Harsh reality is that prices have to and WILL fall a lot more. The fact that the vendor is up to theirs eyes in debt has nothing to do with it. The market, economics and Banks will force this to happen. Wait until the Government imposed moritorium runs out later the year and Banks start repossessing houses. If you see the house beside you being sold for 100g when you are still looking for 350 two years after you put your house up for sale the harsh reality of the situation is going to smack you in the face then. Harsh and all as it is people should be cutting their sale price NOW and selling because in another 2/3 years time the price will have gone through the floor completely and they will be a lot worse off.

What you're looking at here is a worst case scenario where the economy stagnates and the property market mirrors that of e.g. Japan. For various reasons, off topic here, that's unlikely in Ireland as part of the EU. I think your point could be fair with regard to investment properties which are highly geared, but most people in homes are unlikely to panic sell (and won't have the option as they are so heavily indebted). They are likely to wait the 10, 20 or 30 years to when the price of their property recovers, or to when a life assurance policy clears the mortgage. Difficulty could arise though if interest rates increase exponentially.

Fozzie Bear wrote: »

There is no Schadenfreude to what I am saying here either. I know plenty of people in all sorts of trouble and but for the grace of God and a cautious nature I would have been one of them too and looking into the abyss now.

+1 on that one.

skelliser

There is no question that house prices where super inflated by the media, auctioneers, gov. and championed by the "starter home" property ladder" brigade.

Why should i, born and breed Galwegian, be forced to buy a house 50/100 miles from my own town. I didnt buy any of this property celtic tiger stuff and didnt buy a house. Now we are returning to realistic prices people are desperate to hold on to their illusionary values of their houses.
The market should decide the value, not the negative equity trap, auctioneers looking for a return to the good times and FF/property hawks looking to make a buck.

Its time to get real. TBH i knows it sounds harsh but i have little sympathy for people who bought at the height. No one forced them to buy.If you have a problem take it up with the above.
There are many people out there who saved and spent frugaly during the celtic years, now its there time to shine.

This is what capitalism is. But apparently its different in ireland; Capitalism as long as things are on the up, Socialism when things are going down! ie. bailouts, taxpayer pays.

ScumLord

Fozzie Bear wrote: »

We definitely won't agree on that one Webbs;). Galway does not have an X factor anymore. What Galway has are canny auctioneers who have spun this line that Galway is different for years and as a result prices were ahead of the pack. There may have been an argument made for the X factor back in the good ould days when demand/hype out stripped supply in Galway. But thats not the case anymore and there is no reason why prices should be any higher here then the rest of the country.

The prices are as high as they can be, if people pay them they'll stay high it's as simple as that. You may not think Galway has the X factor anymore but thousands would disagree. It's a much loved town by anyone I've meet that has been there. It has festivals coming out it's ears, there's some bizarre ones you may not even have heard of. It's really Irelands tourist destination too, while other towns may suffer from lack of international tourists Galway will always get it's regulars. The very fact house prices are high kind of goes some way to proving that point.