Looks like Property Prices are ACTUALLY on the way up.

worded

Property porn is back ......

Nice

Grayson

arse..biscuits wrote: »

I know a few people who have bought or are trying to buy in Dublin in the last year and they all had to bid against other people. Seems to be plenty of people buying in Dublin.

But there's still loads of property which is vacant and not on the market. The only reason prices are going up is because owners & nama are unwilling to sell. The nasty thing is the when that property does hit the market the prices will drop.

April O Neill

bnt wrote: »

This article in The Guardian is an example of someone desperate to get on the "housing ladder" (ptui) but not keeping an eye on the fundamentals. The expert reply and the comments are eye-watering.

:eek: at the "expert" reply!

Some of the comments underneath are very sensible though.

grendal

arse..biscuits wrote: »

I know a few people who have bought or are trying to buy in Dublin in the last year and they all had to bid against other people. Seems to be plenty of people buying in Dublin.

market in Dublin bottomed nearly eighteen months ago , Dublin is a different country to the rest of Ireland when it comes to property and this will be come more pronounced in the years to come , outside the capital , I would be in no rush to touch property

steddyeddy

Property prices should not be on the rise. They should reflect market value of the properties and not encourage a situation where we an economy based on property.

c_man

The parents have been making a few comments recently, along the lines of "would you think about buying at all?" or "they say it's a good time to buy" :eek:

Mainly prompted by a cousin of my age getting engaged recently, "he has the house built and all". Big deal. I have a pretty sweet rig for online shooters but you don't hear me bragging...

awec

c_man wrote: »

Is it just me, or do properties still seem overpriced? I know they've dropped from the highs of the boom but seems to me that most places are still rip-offs.

They will stay that way until the banks do what needs to be done and start repossessing houses off people who are not paying their mortgage.

They are being kept artificially high.

omahaid

I'm not sure repossessing a load of celtic cubby holes in the "short commute to Dublin" town of Ballyjamesduff or wherever will affect house prices all that much.

justforlaugh

why would anyone sell their house and make a huge loss... house price need to stop going up,

steddyeddy

awec wrote: »

They will stay that way until the banks do what needs to be done and start repossessing houses off people who are not paying their mortgage.

They are being kept artificially high.

Not to sound Ruthless but I agree.

awec

omahaid wrote: »

I'm not sure repossessing a load of celtic cubby holes in the "short commute to Dublin" town of Ballyjamesduff or wherever will affect house prices all that much.

Will result in a lot of property going entering the market which ultimately drives prices down.

NAMA are at fault too.

Only when NAMA release the property they are holding and the banks start actually repossessing off people who aren't paying will the market be fixed. Only then will we see the true reflection of prices. They'll probably go down by a pretty significant %.

What is out there now is a fabrication.

seamus

awec wrote: »

They are being kept artificially high.

We actually don't know that until the repossessions start. If the majority of repossessions are two-bed apartments in a glorified field in Ballygonowhere, then this will have no effect on house prices in the cities.

On the other hand, if we see a surge of 3-bed semi-d's in Sandyford, then you will see a noticeable effect on house prices in the Dublin region.

House prices though are largely dictated by the availability of money. There are quite a few cash-rich people out there; people who were prudent during the boom, cashed in and sat on their money. They're now popping up and buying properties for cash;
http://www.limerickleader.ie/news/business/limerick-farmer-makes-2-8m-profit-in-land-deal-1-5230067
This is an extreme example, but there will be plenty of smaller sellers who sold a house for €600k and are now sitting pretty on that cash and looking to pick up the same house for €300k.

It's also the case that for those who are still earning, they haven't seen enormous drops in their salaries - typically 10 to 20%. Factor in tighter lending criteria from the banks, and while their ability to borrow has been constrained, they can still borrow quite a large chunk. So the couple with €100k/year may have been able to borrow €600k in 2006, but they will still be able to borrow €300k now. Which is a big lump of cash to spend on a house.

It's a bit of a fantasy that a house which sold for €480k during the boom will somehow drop back to €80k now, unless we expect to see wages fall by 75%.

The boom was a bit of an exceptional time where suddenly property became valuable regardless of where it was located. The market has/is correcting now back to a typical scenario. It is likely that we will start to see prices rising around the cities, while they continue to collapse outside of them.

awec

seamus wrote: »

The market has/is correcting now back to a typical scenario.

It cannot truly correct itself though until repossessions happen and NAMA release their portfolio.

omahaid

I don't see NAMA doing this to such an extent that it would force house prices down. Instead I forsee a protracted drib drab release so as not to dampen any "recovery". I'm not defending it btw, only predicting it.