Softening house market?

road_high

I think cheaper more affordable homes in decent locations (€350 k or less) will still be in demand. Especially anything turn key. But it’s the more expensive and also poorly located stuff that I can see under pressure and already appears to be the case. More expensive stuff moving very very slowly now or not at all, even with price cuts.

Donald Trump

https://www.boards.ie/discussion/comment/119709635#Comment_119709635

How would they give notice of months in advance given that such increases are usually triggered by central bank (ECB in this case) policy changes?

If the markets move and rates have moved up, then it's not really realistic, or fair for that matter, to allow people months to lock in at a lower rate than the market rate given that they know it has gone up. Such behaviour would need to be subsidised by all other consumers!

Padre_Pio

https://www.boards.ie/discussion/comment/119711345#Comment_119711345

I don't expect them to give months of notice.

I would like them at least say that people who got their loan offer before X date are safe from rises. At least this would give surety.

People are usually in constant communication with their mortgage provider. The same provider deciding to increase rates with 4 days notice is cruel. Thousands of people are likely trapped between signing contracts and drawing down, and now have to pull out of purchasing at considerable personal costs to go with a cheaper lender, or suck it up at considerable personal cost in extra interest.

Donald Trump

https://www.boards.ie/discussion/comment/119711362#Comment_119711362

I don't think it's cruel. If the cost goes up, the cost goes up. You have a choice whether to pay the new rate or not. Same as everything in life. You can be the highest bidder on a house for weeks and have someone outbid you at the last minute. That's tough titty too.

Realistically, the change will at least partially manifest itself in lower prices (all else equal). At least in the medium term

Padre_Pio

I don't think your example is equivalent, but I do agree that life can be a b*tch.

I hope the backlash Finance Ireland is getting will make other banks take a softer approach.

Donald Trump

https://www.boards.ie/discussion/comment/119711401#Comment_119711401

If the opposite happened, we wouldn't want the buyers to be stuck on a higher rate either. i.e. if they had an offer at X% and the ECB dropped rates, then they should be allowed to ditch that and get a lower rate.

I know it's tough, but ultimately it is better that, if enough people can't afford the same price due to the higher rate, then the seller will just have to accept a lower rate . There will unfortunately be some people who maybe miss out of a house as a result of the raise ... but then there might be others who will step in and now get a house they were outbid on previously for the price they bid.

Looking at the individual perspective from the person missing out, yes it is harsh, but from a macro level, it is not necessarily a bad thing.

https://www.boards.ie/discussion/comment/119710736#Comment_119710736

We've been hearing that for some time now...

Interesting to note that there are new builds on the outskirts of Galway City that have been advertised since nearly the start of this year and still not sold. 2 Semi D's still available, €440k with HTB scheme could be €410k. I would have thought in today's market they are not over the top expensive but strange they are still available. Conveniently located near motorways to Dublin/Limerick and about 10min drive to the city.

Viscount Aggro

Theres still a supply shortage. In Dublin there are enough high earners, or people with huge cash savings.

Take an example, I know a couple who both work for the state, have 150K combined income, and 200K in savings, and an existing house with a lowish mortgage (200K).

Cost of living pay increase is coming for them, so they can move forward with a house purchase.

Jonnyc135

https://www.boards.ie/discussion/comment/119711674#Comment_119711674

I would have thought a 2 bed semi D at that price is expensive, if it was a 3 bed semi d in that location I would say fair enough

Zenify

I've been a long term lurker of property threads here. I remember after the 08 property crash when prices started going up a poster said they timed the market at the very bottom. They said they achieved it by using sentiment on boards.ie. if anyone has been around here for a while it's so interesting to see how opinions change. Obviously, there's always exceptions but the general mood here is going very downhill.

Galwayhurl

https://www.boards.ie/discussion/comment/119711785#Comment_119711785

They're 4 beds. There's 2 of them.

https://www.daft.ie/new-home-for-sale/cuirt-bhoirne-cuirt-bhoirne-roscam-co-galway/3946129

what_traffic

https://www.boards.ie/discussion/comment/119711674#Comment_119711674

"and about 10min drive to the city. "

I presume this is at 04h45 in the morning?

Are you are referring to Roscam?

https://www.boards.ie/discussion/comment/119711813#Comment_119711813

Correct, apologies, I didn't mean 2 beds, I meant 2 houses. I wasn't very clear.

https://www.boards.ie/discussion/comment/119711856#Comment_119711856

Yes, Roscam, well I guess thats true regarding drive to city. But I would have thought these would be snapped up considering they are close to Parkmore and Ballybrit, where the majority of people living in Galway seem to work. Location wise it would suit so many people in Galway, and it even gives the option of working in Limerick being that side of the city. I thought it was strange they are still available, does any of you know anything about that area / estate? Cheers.

Jonnyc135

https://www.boards.ie/discussion/comment/119711813#Comment_119711813

That makes a lot more sense

mcsean2163

https://www.boards.ie/discussion/comment/119711813#Comment_119711813

Is there two currently for sale and once those are sold another two come to market?

interesting all the same...

Galwayhurl

https://www.boards.ie/discussion/comment/119711911#Comment_119711911

Just 2 remaining according to the ad so presumably "when they're gone, they're gone".

https://www.boards.ie/discussion/comment/119711911#Comment_119711911

No, I dont think this is the case, but I could be wrong. I think there is just 2 houses left.

what_traffic

Back in the day (before Pandemic) used to work in Parkmore regular - I live on the West side of Galway City, my colleague lived in Roscam. My journey times were 90% of the time quicker than him in the mornings to work. I was doing 11km on a bicycle and he was driving just under 4km ( he still never switched ); it has changed though since but still have cronic car congestion coming in from the East of the County on the approach roads at Roscam.

It is a brand new estate - I am pretty sure it was SOLD OUT earlier this year, so probably previous marked buyers have dropped out for financial / personnel reasons but I say they will sell pretty quickly.

It is close enough to Oranmore Railway station and the Dublin Road bus lane as well so if one worked in City Centre it's a decent enough location publictransport wise(Galway style mind) .

Off topic - whoever ends up buying them will be a dealing with a pro.

An absolute gentlemen is Mr. Niall Browne of ODJ.

Was bidding on a house this year that he was selling - did not work out; but it was pleasure dealing with him during the process.

byrne249

https://www.boards.ie/discussion/comment/119711674#Comment_119711674

Had a deposit on one of them before deciding against it back in March for various reasons. The guy at the showhouse viewing mentioned a lot of people dropped off the waiting list after prices released. At least that was his claim. Anecdotally I have heard from people living in the estate there is a concern it may be going in the wrong direction.

https://www.boards.ie/discussion/comment/119712000#Comment_119712000

Cheers, thanks for this information. Good to know.

StevenToast

I think i will start a new thread about house prices going up......

In a few years after this "softening period".....It will be accurate!

Everything is cyclical...people are sheep....

If you like a house, can afford it and want to live in it for a long time, just buy it and stop hanging around...

Stop looking at houses like investments and just live in them!!

Claw Hammer

https://www.boards.ie/discussion/comment/119711701#Comment_119711701

They must be right eejits to have enough cash to clear the mortgage. They can't be getting any interest with that cash on deposit, yet are paying a mortgage. Only the state would employ people like that!

Bass Reeves

https://www.boards.ie/discussion/comment/119711870#Comment_119711870

You were clear you said 2 semiD's. Now I would actually have presumed a minimum of three bed. 2 bed would never enter the equation of semi D.

2 beds are usually either duplex's or townhouses

Bass Reeves

https://www.boards.ie/discussion/comment/119712037#Comment_119712037

No they are not. They probably have a tracker mortgage. They are probably paying 500-1k in interest every year previous to the present rate rises.

They will have children going to college in a few years time it will cost 50k minimum per child.

Money also gives opportunity. IMO they should have bought property in the 2014-2016 period however it's not everyone's cup of tea. However a holiday home would have been a good balance up to two years ago there was some right bargains.

I have a commercial tracker from my ''cold dead hands'' will they get it.

djan

https://www.boards.ie/discussion/comment/119712037#Comment_119712037

A mortgage is usually the cheapest money you can get. Always a good idea to have money ready to invest, more so given that a recession/drop is more likely than not even accounting for inflation.

Bass Reeves

https://www.boards.ie/discussion/comment/119711811#Comment_119711811

We have has these downhill feeling before. You get what I call the Chicken Lickens running around screaming the sky is falling in.

We had this in the early stages of Brexit and COVID. Any corrections will be in the order of 10% IMO, it may go slight above that however the big question is will there be availability. While we have had a small surge in house's for sale there is slowdown in the building sector. That brings it own issues and it may reduce supply in 6-12 months.

It amazing none of the CL's are will to forecast the level of decrease they expect and why.

Most of these guys must have most of the house price in cash. Because in the case of a complete crash it would require a credit squeeze it access to finance is the issue.

awec

https://www.boards.ie/discussion/comment/119712084#Comment_119712084

I dunno, I think living a mortgage-free life would be incredible.

notAMember

https://www.boards.ie/discussion/comment/119712155#Comment_119712155

You limit your financial levers by stuffing money under the mattress (Any low/no interest savings account is effectively this), rather than using your own equity.

With a mortgage vs any other loan, your assets are protected from being eroded by inflation. (assumption is that you are not in a bubble). Your property in theory will stay stable in value, rising / falling with the market, while providing you with a place to live.

You also have some financial options with a mortgage, you can top up a mortgage without substantial new loan approvals. So it's another tool in your toolkit for weathering any unexpected expenses (along with rainy day funds etc)

You can pause a mortgage at any time, for no reason at all. I paused ours for a summer once for example, when taking a long-haul holiday, just for extra short term spending money. It was a mere phonecall, and sign the letter they sent.