Softening house market?

markodaly · 26-05-2022 6:36pm

https://www.boards.ie/discussion/comment/119115301#Comment_119115301

Is there a daft.ie equivalent of price changes?

Tar.Aldarion · 29-05-2022 7:41pm

https://www.boards.ie/discussion/comment/119116005#Comment_119116005

Yep, i just went sale agreed 100k over asking, lots of competition.

Padre_Pio · 29-05-2022 9:51pm

https://www.boards.ie/discussion/comment/119131941#Comment_119131941

Was the house priced low, or what's the reason behind bidding so high?

keoclassic · 29-05-2022 11:00pm

https://www.boards.ie/discussion/comment/119131941#Comment_119131941

That's a big number over asking! You were obviously still within your budget. Are you worried about interest rates increasing at all? We are looking currently and to be honest, I think we will be reviewing our budget with what appears to be coming down the line. We are going to reduce our too price by about 70k and work well within our limits. Things are starting to look a little scary.

Pussyhands · 29-05-2022 11:03pm

You're going to see some crazy bids going in from some people as they will be desperate to buy with the rumoured recession. People might be thinking it'll be harder to get a mortgage or they're just desperate now to lock in low rates before the rates go up. Those having daddy's money to run up bids don't really care.

Pussyhands · 29-05-2022 11:35pm

I don't get the price changes. Just out of curiosity I went on for a look on myhome.ie

Showed a property went from 275k -> 325k asking in February. On PPR it shows as sold for 285k in April.

Is there any way of seeing how many price increases/decreases there are?

hayse · 30-05-2022 12:07am

A lot of poker going on.

Mr Hindley · 30-05-2022 8:31am

The UK house market is starting to cool off a little. Obviously every market is different but I would guess they would have more similarities to us than most. https://www.theguardian.com/money/2022/may/30/average-uk-house-price-tops-250000-but-market-starting-to-slow

seamus · 30-05-2022 9:04am

https://www.boards.ie/discussion/comment/119132862#Comment_119132862

Anecdotal from me, but a lot of people are greedy about it. They may also be bidding on other properties based on what they want to get for their own and are overstretching themselves.

I know of one couple who put their house up at 725k, lots of bids on it, got one in at 810k. Weren't satisfied with that, they thought it could go higher. Eventually all the bidders said "sod this" and left them at it when they didn't accept the 810k. They had to "settle" for 770k a few months later when that was the highest bid they could claw back.

Ultimately this is not something that most people do very often, so they're not very good at it. "Poker" is good way of describing it because they're doing things that they think might work to influence buyers. Whether thats advertising low to attract buyers or advertising high to "force" people to bid higher, there's a lot of fumbling around in the dark. Estate agents can really only advise, they're not going to decline a listing because the vendor has unrealistic expectations. Almost everyone will eventually accept the highest bid that's offered, whether that's more or less than what they wanted.

Padre_Pio · 30-05-2022 10:07am

https://www.boards.ie/discussion/comment/119132862#Comment_119132862

Our (rented) house went sale agreed. After the inspections, the buyers offered less to cover the cost of minor renovations. Seller accepted.

Tar.Aldarion · 30-05-2022 11:55am

https://www.boards.ie/discussion/comment/119132493#Comment_119132493

The main contender was a cash buyer that wanted to rent it out as it is a 4 bed in Dublin city centre, without him it probably would have just been 20k or 30k over asking or so. Tbh I have no idea if it was priced low or what it should be priced at.

Tar.Aldarion · 30-05-2022 11:59am

https://www.boards.ie/discussion/comment/119132738#Comment_119132738

It was actually the last bid I could do with a loan exception (didn't mention it), and was shocked that the guy gave up on that last bid after us going back and forth for a month. Rates are indeed a disaster, since I started looking mine went from 1.95 to 3.45 or so, nearly 300 more per month, so trying to get another bank approved now but it's dicey. I'm lucky enough that it will just be an annoyance rather than something scary but I think a lot of people could be at more risk and should tread carefully.

Marcusm · 30-05-2022 12:24pm

https://www.boards.ie/discussion/comment/119133381#Comment_119133381

Big difference in the UK is affordability, LTV and LTI thresholds. Much greater debt burden, I would expect. Also s much broader mortgage market. UK prices are well beyond 2008 prices.

Padre_Pio · 30-05-2022 2:28pm

For people hoping house prices drop, you also need to consider your interest rate.

On a 350k house with a 90% mortgage over 30 years, every 0.5% rise in interest adds another 30k onto your interest repayments.

So you may be better off buying high and locking in a low rate for as long as possible.

Pussyhands · 30-05-2022 2:43pm

https://www.boards.ie/discussion/comment/119135085#Comment_119135085

That's what some people are doing, which is maybe why some prices are going insanely high.

On the other hand, many people simply don't have the extra cash to run up mad bids. Even if you had to pay the same monthly mortgage, it's better if prices drop because your deposit goes further. So if you can only get a mortgage of 250k and your mortgage deposit is 50k, and say a house you wanted is asking for 320k, you're out of luck. You need another 20k in cash to be able to buy it.

Whereas if mortgage rates went up and house prices came down, say the above dropped to 300k asking, your mortgage per month may be higher than if it cost 320k on lower rates, but at least now you can actually buy that 300k house.

awec · 30-05-2022 2:52pm

https://www.boards.ie/discussion/comment/119135085#Comment_119135085

True but you also can't really look at it over the full term unless you fix for the full term.

Padre_Pio · 30-05-2022 3:04pm

https://www.boards.ie/discussion/comment/119135250#Comment_119135250

Yep, but you can only work with the information you have. Who knows what interest rates will look like over 30 years, but it seems the historically low rates are coming to an end.

JimmyVik · 31-05-2022 12:52pm

Two houses near me built by two brothers about 30 years ago. They are more or less identical.

One of them sold about 3 years ago for €420k. The other was on the market last year for €625k and went sale agreed at €635k. It was like that for about 3 months and it fell through and went back on the market for €640k. Then it was like that for another 3 months with no interest in it at all. Then they dropped the price to €610k. Went sale agreed 3 weeks later.

I see on the PPR its there now and the sold price is €690K. New owners moved in a few weeks ago.

DellyBelly · 31-05-2022 1:01pm

https://www.boards.ie/discussion/comment/119139253#Comment_119139253

Is it the houses that are identical or the brothers?

Varik · 31-05-2022 5:35pm

If there is a crash it won't be like the last one.

We'd still have the high material costs, and we'd have an even greater labour shortage. We'd also be going into it with a large shortage of properties rather than a excess of them (of varying quality).

SuperBowserWorld · 31-05-2022 5:40pm

https://www.boards.ie/discussion/comment/119139293#Comment_119139293

I heard it was a big mirror someone put up next to one of the houses to make it look like their was another house for sale.

It's also a good way for the government to double the housing output.

Amadan Dubh · 31-05-2022 5:42pm

https://www.boards.ie/discussion/comment/119135368#Comment_119135368

And 3 or 5 years fixed is not locking in long term low rates, especially those that FOMO purchased the last two years - while the economy may be going through a muted growth period in the next few years, mortgage repayments could be climbing hundreds per month!

keoclassic · 01-06-2022 6:49pm

Have been looking at myhome the last few weeks again and as of the last 7 days I've noticed a good few prices have reduced,but not by much! But 1 or 2 that I had been looking at in the meath direction have dropped 10 and 15 k respectively. Maybe things are starting to calm. Maybe we are at peak! One thing I have also seen is houses that were sold 2 years ago are reappearing 50 and 60 k above wat they sold for. Chancing their arm I'd say to test the old waters.

newmember2 · 01-06-2022 7:28pm

One thing I haven't seen mentioned which may be more common now with the current housing situation is people are going for FTB mortgages at an older age so may not be getting 30 or 35 year mortgages. A decrease in the loan term will equal a decrease in the loan offer amount when repayment affordability becomes a factor.