Softening house market?

Well with supply now increasing we might be seeing more of the anecdotes above coming to the fore. Tightening of credit will accelerate that trend.

460k for Adamstown is nuts. Maybe that's why there were only 10 families there.

Galway City has definitely cooled down as well as far as I can see. There are 8 properties that was i keeping an eye on in a popular area. All are up on Daft since mid June. Still not sold. One of them got reduced from 475k to 460k on Wednesday.

I think people are very worried about the coming months and aren't interested in buying a house for now. Or cars, clothes or gadgets either going by the latest retail sales figures. New car sales down 25% in july according to the CSO.

Can see a lot of businesses going to the wall over the coming months. Going to be an interesting year ahead.

One just has to take a look to America to see how quickly the market can turn. The anecdotes above are all before increases in borrowing have been passed on. Now banks are becoming more selective in the amounts they will lend. Down the line they will actually be increasing the rates on what they lend. Going to be interesting how the market adapts in the run up to Xmas. Will the likes of those Galway houses keep their AP's at the same level or will they start to follow the first mover down?

Loans are already low cost as the interest rates are very low 2-2.5%. the ECB is hinting that it will stop at 3% and is willing to live with inflation @5star02707@ 5%. We have had state lending to large commercial enterprises before and it's a mess with howls of favoritism. Most people employed on building sites are subcontractors or are employed by subcontractors. Developers tend not to employ staff directly

Any change to planning rules ends up court. The government already tried to stream line planning and plannings granted under this have ended up in court and been turned over.

Yes. There needs to be a proper site tax. I think that when an area is zoned residential, an annual tax should kick in. That tax should increment over time too. There can be a waiver of a reasonable time at the start. If the person does not want to sell the land and does not want to pay the tax then they can apply to have the zoning removed and reverted to agricultural or greenbelt!

After that, once planning permission is obtained, it should be subject to a higher rate of tax which also increments over time. There can also be a reasonable waiver here too so that a developer should be able to build and sell within that time.

Use it or lose it basically. What the system now has is that there is a certain amount of land rezoned. That is snapped up and hoarded Then if there are proposals to rezone more due to housing shortages ..... they come back with the argument "sure we have loads zoned and it hasn't been used which means there must not be need for it". Basically holding us to ransom.

They would have never said such a thing. They might have expressed a view that they would not panic in allowing it to surge past the target rate temporarily but they have a target rate for good reason. They would never have indicated a willingness to live with high inflation for anything other than the short term. Even then, it would only be in the sense that they would be hoping it would abate of it's own accord.

Inflation numbers in the US surprised the markets last week by being higher than expected. Markets are now factoring in at least a 75bps rise later this week. That will add to inflationary pressure on the Eurozone countries.

Article in FT indication rates across the board are expected to be far higher than was previously expected.

https://www.ft.com/content/3d7bfcdd-512d-4d67-8daf-52308db94c37

We went to view a gaff in Crumlin the other week. The previous owners had added a pretty nice extension and the garden was a nice size. I'd no intention to buy and mainly went to view it to see what the extension was like tbh.

Here's the thing. It's a 2 bed mid terrace towards the dolphins barn end of Crumlin. Other gaffs in the area are listed at 299-350 depending on if they're end of terrace. Generally sell about their asking price + 20k. But they wouldn't have extensions and this place is pretty much turn key.

This gaff was listed at 395. Just about acceptable because of the extension but even that's a stretch as the area is fairly grim. Bidding ends tonight (auctioneera - a dystopian eBay for houses) and current highest bid is 495k. For a 2 bed mid terrace in Crumlin.

Insane, but there's clearly a few interested parties.

EDIT: bidding finished and highest bid was 500k on the nose. That has to be near the most expensive a house in Crumlin has ever sold for. My god. A 2 bed mid terrace for half a million euro.

No doubt. Very nice extension and the garden is a nice size but definitely not manicured. It's a standard garden and many of the houses in the area have similar or bigger gardens. The extension is c. 30sqm based on other houses (house is 98sqm - other houses are 67sqm).

Nevertheless, it's a 2 bed mid terrace in Crumlin/Dolphin's Barn. You can get bigger houses in decent suburbs for that kind of money. It's obviously ticking the boxes for enough people to enter into a bidding war, and turn key places still obviously command a premium in the market. But you can't help but think the vendors are pinching themselves. They've made a nice profit there

Do not touch Auctionera. I've seen dire properties on that site go for nearly 100k over the asking. It's nothing at all like ebay. Anyone could bid, and the "ending time" is always extended with each bid, which would not happen in a real auction. I would wager that many sales on that site fall through after the adrenaline wears off.

Every house I have viewed in North Dublin so far has gone sale agreed within a couple of weeks and at above asking price.

Auctionera is not an auction. In a real auction, and on ebay, bids are binding. Anyone can "bid" on that site and drive up the price of a house.