Softening house market?

The 0.5% I was referring to was the increase from -0.5% ECB rate to 0% ECB rate. This could actually have had a positive effect on businesses as the rate they paid on loans did not increase, however there money on deposit would have started to exit from the effect of negative interest rates.

That technical increase in interest rates could actually be seen as a boost to the economy when the economy is strong.

IMO the banks may even absorb some of the next increase as well. We will need to see interest rates of nearly 1% before we see a real 0.5% interest rate increase in the economy.

Money will not start to flow into deposits out of the business until that happens

Softening outside urban areas?

Is there any noticable slow down or change in asking or actual prices in more rural or western areas? The Covid bump caused prices in some of these areas to skyrocket. Those trying to buy in Dublin suddenly presented with an option to work anywhere but have Dublin sized deposits, thus putting prices way out of reach for long term rural dwellers. With many being encouraged back to the office, is this phenomenon lessening?

Will be interesting to see what happens in 6 months time in Dublin - Theres been news article of late suggesting that WFH may be less attractive if energy cost continue to rise unabated.

Very poorly taught out article. Unless you live within a short distance of your work any savings will be lose in transport costs. For familiers it may mean extra child caring costs as well. yes young single people living in rented accomodation where they live near there work may find it cheaper to go to the office rather than WFH. Even a modest commute of 150 miles a week will cost 30/week in fuel alone, add tyres, maintenance and wear and tear on a car and you are probably at 50/week. That is 200/ month in transpport costs. Add in childcare costs and the inconvience of spending 60 minutes commuting and its hard to see it not costing you to go to the office

That's fine if you have a large commute, which always seems to be the assumption. But a tonne of people don't have a large commute and/or take public transport. I have no doubt energy bills will cause more (not all, just more) workers to return to the office. I don't think people have a grasp on just how bad their bills are going to get.

I don’t think that’s true. Living in Kilkenny where there’s a big office workforce people are definitely back in offices- you can see it in the traffic and just talking to people.

We have had the Chicken Lickens around since 2014 when prices started to rise in 2014. First of all the rise in prices was an anomaly and we would get a double dip. The. It was Brexit, then it was the LL going to flee from the market that would cause a complete collapse. Next ot was COVID, now it Ukraine conflict and energy prices.

The advice was always ''you be an idiot to buy houses will be 20+% cheaper net year.

I hope too many people did not take there advice over the years.

My sense is that employers are keen to get employees back in the office but most are offering at least a day or two at home. Anecdotally, attendance is still lower than this with some employees refusing to come in regularly, if at all. The battle lines are still being drawn on this front, so will be interesting to see how things evolve.

However, when it comes to the consequential impact on those wishing to move permanently west etc. outside of the major urban areas, it presents a problem: there are a few who can work fully remote and will certainly take advantage of this and move out. This cohort have driven rural prices up and may continue to sustain them for a while. For those however who don't have permission to work full time at home, they have a problem. Once there is a expectation by an employer that the employee be present in the office at some regular interval, there is a risk for that employee in upping sticks away from the office.

In time, this may make the actual numbers moving to Cahersiveen etc. dwindle and prices will adjust accordingly.

I am in market for a new home since last 6 months , and I can tell you that it is now 100 times easy to book a new home than it was 3 months ago , I was not invited for a phase launch in south dublin where I responded to launch email in < 2min

Recently I booked the same development in next phase after responding to launch email after 5 hours , and also when I went there I had a choice of like 20 homes to choose from which was unheard of in last 2 years

But I did not sign the contract and backed off as I do not see the value in paying the high price buildup of last 2 years given that rate of interest might go higher again and so do not want to have a high house price + highest interest rates locked in , when the market collapses

Things are absolutely quietening down significantly - I viewed a house last week, really nice house in a great location in Stillorgan, handy for shops, Luas, N11, all in good condition, a fair few other people there (it was the second open viewing.) I just assumed it would be going for well over asking. I phoned up today, and there's only one offer in, at 5% below asking. Even a month ago, I don't think that would be the case.