End of year spike? - too much?

condra

Is it just me or is the current rush to get tax relief actually pushing the prices of some houses up way too high?

In the areas I've been looking (D3/5/7/9), there were houses sold back in March for 220 that could get 255 now.

Someone I know recently got into something of a bidding war over a house in Whitehall, and had to be dragged away at fairly bloated price for a pretty tight 3 bed semi.

That same person is still insisting on buying this year, and doesn't believe me when I say there will be way more choice and value come Feb/March.

It looks to me like a lot of people will save money in the long run, by waiting until next year, and the big winners so far, are the people who bought in Q1 2012.

Is there any reason to think house prices in 2013 won't at the very least, go back down to where they were earlier in the year, possibly lower?

Milk & Honey

condra wrote: »

Is there any reason to think house prices in 2013 won't at the very least, go back down to where they were earlier in the year, possibly lower?

It is all about supply and demand. There has been very little housebuilding for several years. By now, in Dublin the overhang of unsold units is lifting due to positive net household formation.
Rents have begun to rise and interest rates are relatively low. Given that prices have stopped falling, for now, means the rent is dead money argument is getting a new lease of life and the rent vs buy maths are showing more in favour of buying.
The banks are lending to some extent so there are people with the means to buy looking for a suitable property. These are in short supply.
After new taxes are announced in the budget and the panic to get in before the end of the tax relief subsides things may change.

ted1

I paid 212 in June house a couple of doors down has just gone on the market at 340, now its in better condition on that its painted better but not to the tune of 118 maybe 10k. I reckon they'll get 300. Guess things bottomed out in SoCoDu and things have picked up.

L1011

Dead cat bounce. Mortgage interest relief ending is generating panic and property tax will push downwards when it comes in.

Probably the best time to sell for a while though!

TheFarneyman

mass unemployment,
huge departure from the country of people in their 20s/30s.
people reneging on mortgage repayments 15-20%
mass negative equity
harsh budget on the way
still only secure public sector workers really getting approval!
mortgage interest relief gone in 2012

This is def the best time to sell before xmas, because after xmas and into next year it'll be back to normal trend of 10-12% drop. Double dip every economy has gone through it when they are in freefall!!!!!!!!!!!

condra

Thanks for all the replies. Lots to think about there, but yeah, it looks like there will be some houses sold for well over the odds in the next few weeks.

gurramok

condra wrote: »

Thanks for all the replies. Lots to think about there, but yeah, it looks like there will be some houses sold for well over the odds in the next few weeks.

If so, can you take note of their asking prices now and then compare to their actual sale prices on the property register when they appear? Handy to have some proof.

Zamboni