How much did house prices drop after 2008?

Mad_maxx

bubblypop wrote: »

Very very few!
friend of mine bought back in 2006/07, hasn't paid a single penny on the mortgage since 2012. Still living in it.

and people wonder why interest rates are so much higher here than on other Eurozone countries ?

tscul32

Saw a house online in the early 00's (not sure what year, but late peak) that we would have loved to move to. The asking was €600k, suburban Dublin 4 bed semi. Our house at the time - 3 bed semi, only 2km between them but crossing the border to a less posh area - probably would have achieved the same €600k (bought in 2001 for IR£200k) but stamp duty would have been €40k so that ruled it out. Crash happened soon after. Fast forward to 2011 and we sold our house for €305k and bought that same house, hadn't sold previously, for €310k and stamp duty was only €3k. Recently told by an EA that we could possibly get up to €500k for it now.

magicbastarder

Mad_maxx wrote: »

interesting , assume you bought towards the end of 2003 ? as even the lows of 2012 were no lower than 2002 levels

No, got the keys in March 2003. As mentioned, things were going crazy at the time. I was looking at houses in stoneybatter making 195k, and seeing pretty much the same houses making 250k within two or three months. That was in late summer/autumn 2002.

Mad_maxx

magicbastarder wrote: »

No, got the keys in March 2003. As mentioned, things were going crazy at the time. I was looking at houses in stoneybatter making 195k, and seeing pretty much the same houses making 250k within two or three months. That was in late summer/autumn 2002.

Suppose there are always exceptions to the rule but even with a huge crash, prices didn't drop to 1999 levels or anything

Padre_Pio

Mad_maxx wrote: »

Suppose there are always exceptions to the rule but even with a huge crash, prices didn't drop to 1999 levels or anything

Wages have stagnated for the past 10 years.
Average person can get less of a mortgage now than they could in 2006.

PCeeeee

50% approx. when I bought in 2014.

beauf

Padre_Pio wrote: »

Wages have stagnated for the past 10 years.
Average person can get less of a mortgage now than they could in 2006.

I would say wages have been left way behind property prices and costs over the last 30yrs never mind 10. That's said Dublin is a vastly more modern and European and multicultural city in that time.

jrosen

Houses where we had bought our house dropped by about 40%ish. The drop started mid 2007. Even now they are still only selling for about 100k less than they did at their peak.

Timing for us has meant we were buying when the market was high then and again now.

yew_tree

I know of a 3 bed semi in a south Mayo town that sold for €110,000 in 2015 and only last September a house in the same development sold for €210,000

magicbastarder

magicbastarder wrote: »

i bought a house in 2003 for €260k (well, 270 if you include stamp duty) and sold it in 2012 - at the bottom - for €165k. i'd have been able to get probably €450k for it at the peak.

we got lucky here; we sold at the bottom (the new owner got the keys on the may bank holiday weekend in 2012) but also bought six months later, a house that would have sold for 800k+ at the peak. so the gap between where we were and where we wanted to be had narrowed massively.

Galwayguy35

A mate of mine bought a house in 2007 for €275000 in a small rural town and was delighted he got such a good deal.

2 years later the exact same houses in his estate were being sold for €95000

punisher5112

Biggest difference now to our parents generation is both parents must work now to afford a house.....

punisher5112

Our gubernment screwed us tax paying fools so much it's unreal and they're at it again....

We bailed out the rich, it's a vicious cycle.

DubCount

punisher5112 wrote: »

Our gubernment screwed us tax paying fools so much it's unreal and they're at it again....

We bailed out the rich, it's a vicious cycle.

Come the revolution .......:D

Mad_maxx

Galwayguy35 wrote: »

A mate of mine bought a house in 2007 for €275000 in a small rural town and was delighted he got such a good deal.

2 years later the exact same houses in his estate were being sold for €95000

I could be wrong but I imagine houses in the same estate today are still nowhere close to being back at 275 K ?

Galwayguy35

Mad_maxx wrote: »

I could be wrong but I imagine houses in the same estate today are still nowhere close to being back at 275 K ?

No they aren't, must be a right sickening to have paid that much but nobody saw what was coming down the line back then.

beauf

Pussyhands wrote: »

Not everyone has family to buy a house and sell it back though.

How would they get a mortgage if they've been evicted for non payment?

Sure what you're saying would be beneficial for the owner if they could essentially just write off half their mortgage. That doesn't count as the bank "screwing them over"

It's not nice but evictions need to happen. You sign up to an agreement, you say you'll pay X for Y years and if you don't, you agreed you will lose your home.

If someone loses their job, there's no restructuring possible if you have a large mortgage.

There were plenty of cases where the bank refused
to lengthen the term of mortgage in arrears but still being paid. Then sold the property at less than what they would have got had they left the original party in the property. Which makes no financial sense for the bank. Then it turns out many were overcharged by the back and if they hadn't been, they wouldn't have been in arrears in the first place.

10-20 yrs later for Covid the banks did this very differently. They extended loans and offered payment holidays. Maybe you think they shouldn't have done that this time ...

...I think some were hoping...still are hoping ...for a fire sale on property due to Covid and are sorely disappointed it hasn't happened.... yet...

beauf

Galwayguy35 wrote: »

No they aren't, must be a right sickening to have paid that much but nobody saw what was coming down the line back then.

I suspect most people buying 1m houses a decade ago probably have made (and lost) multiples of that in the meantime which probably took the edge off.

magicbastarder

my father used to play golf with a chap who owned 50 properties but called the peak and sold all but about 5 in 2007.
he put his earnings into bank shares.

Mad_maxx

magicbastarder wrote: »

my father used to play golf with a chap who owned 50 properties but called the peak and sold all but about 5 in 2007.
he put his earnings into bank shares.

JP Morgan or Anglo Irish :pac:

magicbastarder

whatever it was, my dad reckoned he lost about 90% of his money.

Damien360

Galwayguy35 wrote: »

A mate of mine bought a house in 2007 for €275000 in a small rural town and was delighted he got such a good deal.

2 years later the exact same houses in his estate were being sold for €95000

That’s the kind of drop I saw in kildare. My house bought in 1999 for 100k (127k euro). Top of the boom the houses on street were hitting 300k. I saw a drop back to 130k for same houses during the bust. Just lately they are back to 260/270k.

My own personal feeling is we are heading for a drop of some description soon. Lots of people will be unemployed when PUP payments disappear and their jobs won’t return. Mortgage failures will be big. All depends how it’s paid for this time and I don’t think the country is willing to swallow another pile of debt.

coolbeans

Galwayguy35 wrote: »

No they aren't, must be a right sickening to have paid that much but nobody saw what was coming down the line back then.

I wouldn't agree that nobody saw it coming. Fair enough the global credit crunch accentuated the pain but it was always coming and very much of our own making.
Firstly, there was no link between the number of houses built and the demand for said houses, and secondly people started to build almost anywhere regardless of location. This was a time when seemingly everyone with a bit of capital was building a small development regardless of location or demand. Thing is though if nations became rich by selling houses to one another we'd all be doing it all the time. But they don't. I saw a lot of farmers lose thousands of acres when it all hit the fan.

Buddy Bubs

magicbastarder wrote: »

my father used to play golf with a chap who owned 50 properties but called the peak and sold all but about 5 in 2007.
he put his earnings into bank shares.

Thats just bad investment strategy evening itself out. 50 investment properties in Ireland is not diversifying, either is putting all your money in banking shares. That's gambling, he was always going to get caught out.

magicbastarder

when we were selling our place in 2012, the estate agent we were dealing with - a very nice chap, actually - was telling me his brother in law worked for one of the banks; and near the peak was allowed borrow (and i remember this very specifically) twenty one and a half times his salary, against a property.
it was a two or three storey over basement property, and he lived in the basement flat and rented out the property above for good money.

just to keep the maths easy - let's say his brother in law earned 50k (i'm sure it was probably more); but that meant he was in hock to the tune of €1.075m on that salary, and monthly repayments would have been very roughly €5k.
however, let's say that for whatever reason, he wasn't able to rent out the property for two months. he'd have had €10k in repayments to make on a *gross* salary of 50k. even if you double/triple the salary, you'll also double/triple the repayments...

Akesh

Damien360 wrote: »

That’s the kind of drop I saw in kildare. My house bought in 1999 for 100k (127k euro). Top of the boom the houses on street were hitting 300k. I saw a drop back to 130k for same houses during the bust. Just lately they are back to 260/270k.

My own personal feeling is we are heading for a drop of some description soon. Lots of people will be unemployed when PUP payments disappear and their jobs won’t return. Mortgage failures will be big. All depends how it’s paid for this time and I don’t think the country is willing to swallow another pile of debt.

There is still an issue of supply but I suspect we will see prices come down because defaults will increase and buyers will be impacted. There is the risk that the government will intervene and prop up failing home loans but this is unlikely considering the debt undertaken due to Covid-19.

If there is major increase in mortgage failures then banks won't be in a position to lend.

beauf

magicbastarder wrote: »

my father used to play golf with a chap who owned 50 properties but called the peak and sold all but about 5 in 2007.
he put his earnings into bank shares.

I know at least one who swore blind the crash was coming. Said that for about 5yrs in the pub. Eventually caved and bought at least 5 properties just before the crash. Took years to recover that back. Not that he needed it either way.

Thargor

Anyone who lives in a rural area will know farmers that sold out to developers for millions right before the crash and ended up buying the unused green fields back for thousands a couple of years later, those will be 90-95% price drops, plenty of stories like that in the South Galway area anyway.

There are still empty concrete shells around my parents place in the same area that I could buy right now for a tiny fraction of the site price that was paid at the time, some places just never recovered.

antix80

Deleted User wrote: »

The highest drop was 50% for one bedroom apartments if I am remembering correctly.

30-40% otherwise. some houses were unsellable for years.

You don't remember correctly

beauf

coolbeans wrote: »

I wouldn't agree that nobody saw it coming. Fair enough the global credit crunch accentuated the pain but it was always coming and very much of our own making.
Firstly, there was no link between the number of houses built and the demand for said houses, and secondly people started to build almost anywhere regardless of location. This was a time when seemingly everyone with a bit of capital was building a small development regardless of location or demand. Thing is though if nations became rich by selling houses to one another we'd all be doing it all the time. But they don't. I saw a lot of farmers lose thousands of acres when it all hit the fan.

I think many were worried they would miss an opportunity. The talk of a crash was everywhere for years.