Current public sentiment towards the housing market?

Status
Not open for further replies.
room305 said:
I do. Most of my friends have as well. Then again, a shocking amount of us also own property!
Click to expand...

Sorry, should have said - people in their 20's without an SSIA and property! The majority of people who could afford an SSIA five years ago already own property by now.
 
whathome said:
It's amazing how the EA's and other vested interests have been so quick to call a soft landing at the first sign of a weaker market.

The full effect of the initial interest rate rises has not been felt yet and we still have a few more rate hikes to come. It's a sad story that they have already had to call a soft landing to encourage any straggling buyers to "come on IN!!!"
Click to expand...


i used to agree completely (over the past few months), but there have been indications just over the past few days, that maybe the Property market has managed to pull the nose of the plane up. Take this in todays Indo for example. We spoke about this here just last week, wondering would this happen, i.e. the builders control the wobble by dropping output:

[FONT=Arial, Verdana, Arial]Approval for house starts drops by 37pc[/FONT]

[FONT=Verdana, Arial]THE number of homes being granted planning permission in Dublin city and county has fallen by almost 40pc in one year. [/FONT]
[FONT=Verdana, Arial]The worrying figures show that in the 12 months to June, 12,644 units were approved compared to 20,183 in the previous 12 months, which is a drop of 37pc. [/FONT]
[FONT=Verdana, Arial]Figures from Hooke & MacDonald estate agents, based on CSO statistics, show that just 1,836 new homes were granted planning permission in Dublin between April and June of this year, compared to 3,309 last year and 5,230 in 2004. [/FONT]
[FONT=Verdana, Arial]"Serious supply deficiencies will intensify within the next 18 months if this trend persists," Hooke & MacDonald said. [/FONT]
Click to expand...

remember this is only the 12 months to JUNE, and not Q3, up until Sept. I can't imagine there has been many developers applying for permission in the past 3 months on very expensive land when they might be hit with an over-supplied market in 12 months when the houses are built, and they can't be sold. So they adopt a 'wait n see' approach. This 37%+ drop in approvals could prove very important
 
whathome said:
Weakening property markets don't make gasps. Once a trend is set in motion, it takes either a huge event or a long time to reverse. Rising interest rates have hit the market and there are a few more blows to come.

SSIA effect on property is rubbish. The amounts are not big enough to affect the trade-up market and people of FTB age don't have them. How old would current FTB's have been when SSIA's were released five years ago? I don't know anyone in their 20's with an SSIA.
Click to expand...

The 'gasp' was metaphorical!! I disagree that the SSIA payout won't have an effect on the market. A couple who pay the full amount will have over 40K to invest. My daughter has an SSIA and she's 24. Every one of her friends have SSIAs, some for the maximum and others for less. Each and every one of them intend to put it towards a deposit.
 
plaudit said:
Can somebody stick up a few prices of Semi-D's in London, in comparable areas to the ~€1m property Dublin house above.
Click to expand...


I don't think Dublin and London are comparable. Dublin and Bristol are a better comparison similar in size, Bristol isn't your typical 'post-industrial' city as can be found in most parts of the UK. Another comparable UK city might be Edinburgh.


http://www.rightmove.co.uk
 
MandaC said:
As someone trying without much success to sell their home, I can tell you that there is a definite change in the market, which I have unfortunately experienced, first hand.

Originally, I put the house up for slightly less than next door sold for at Easter. Since then, I have had to drop the price twice in the five/six weeks the house has been up, and even to achieve the current asking price, that is still €16K less than the exact same house next door (similar decor, etc) got last Easter. And I am at the bottom of the market.

I have had to change EA, as I dont the previous EA was not agressive enough to market the property in the changing market. People are very hesitant, even EA's about the drop. My EA told me that prices in the area are "correcting themselves" at the moment.

I thought originally that it was just an over supply of houses in Lucan, but over the past few weeks and having spoken to other people trying to sell in different areas, its the same all over.

One resident has even taken to advertising their house in the Evening Herald as "Bargain, Bargain, Bargain, €10K off.....just to get their sale.
Click to expand...

Absolutely agree, and anyone who says that asking price drops are insignificant hasn't a clue what they're talking about. Trying to sell a house in the current market and dropping your asking price is a real pain for vendors.
 
I must have the wrong friends only 1 has an SSIA and even then she's only been able to pay into it properly since she got a 'real' job last September. I'm 23 BTW.
 
daveirl said:
I must have the wrong friends only 1 has an SSIA and even then she's only been able to pay into it properly since she got a 'real' job last September. I'm 23 BTW.
Click to expand...

That's a pity, their parents should have been looking out for their financial interests. An SSIA payment was as little as 12.54...pocket money. It's then up to the child to up payments out of part time work etc. while attending college.
 
I'm wary about the impact of SSIA's on the market, especially when the level of debt in the country is so high. But I suppose anythings possible in a bubble market, it does beg the question what happens when the SSIA money has gone?
 
Duplex said:
I'm wary about the impact of SSIA's on the market, especially when the level of debt in the country is so high. But I suppose anythings possible in a bubble market, it does beg the question what happens when the SSIA money has gone?
Click to expand...

SSIA money plus all the reports stating that house prices are dropping will lead the inexperienced to believe that they are getting a bargain IMO. In fact, they will probably still be paying a somewhat inflated price for quite a while yet. I understand that's it's difficult for young people, having spent 5 years saving, with a view to buying a property, to then put that thought on hold!! This is even more true when you view the history of the property market to date. If the budget brings some relief with regard to stamp duty, it will add fuel to this fire IMO.
 
Original AP 800k

Reduced to 790k
[broken link removed]

Can't find it in the cache but you can see the original amount of 800k furthur down the page. These guys are really sloppy and are probably charging 5-7.5K for the pleasure.
 
Funny this talk about SSIA because if you bought a house now rather than 4/5 months ago you would have 'earned' your SSIA money with the savings that you can now get.
 
I don't think the SSIA's are that big a deal to the property. How many people would have bought their house maybe 2 years ago and borrowed money off their parents for example on the nod that once the SSIA matured they would repay them?

This is just one example, but I think the SSIA effect has been priced in gradually. A bit like the first time buyers grant of €3000, you would always see the price being advertised "Nett of Grant"

The same way as tax relief properties are often overpriced in the knowledge that the investor is getting a tax break.
 
I know what I will be doing with my SSIA.

I am due about €15K, and my house has dropped €16K (and dropping) since April when next door sold.

Great....thats what I get after five years of hard saving. Down €1k.
 
liteweight said:
SSIA money plus all the reports stating that house prices are dropping will lead the inexperienced to believe that they are getting a bargain IMO. In fact, they will probably still be paying a somewhat inflated price for quite a while yet. I understand that's it's difficult for young people, having spent 5 years saving, with a view to buying a property, to then put that thought on hold!! This is even more true when you view the history of the property market to date. If the budget brings some relief with regard to stamp duty, it will add fuel to this fire IMO.
Click to expand...

Its terrible to think that if someone takes the plunge and buys now after saving hard for 5 years that there SSIA could be wiped out within a year. Lets hope that the EA's give them sound professional advice.....:rolleyes:
 
MandaC said:
I know what I will be doing with my SSIA.

I am due about €15K, and my house has dropped €16K (and dropping) since April when next door sold.

Great....thats what I get after five years of hard saving. Down €1k.
Click to expand...

Presumably you'll still make a profit???
 
MandaC said:
I know what I will be doing with my SSIA.

I am due about €15K, and my house has dropped €16K (and dropping) since April when next door sold.

Great....thats what I get after five years of hard saving. Down €1k.
Click to expand...

Yes but if you sell soon you'll save a hell of alot more. (in earnings)

How much of a hit can you take ?
 
paddyd said:
i used to agree completely (over the past few months), but there have been indications just over the past few days, that maybe the Property market has managed to pull the nose of the plane up. Take this in todays Indo for example. We spoke about this here just last week, wondering would this happen, i.e. the builders control the wobble by dropping output:
Click to expand...

Not sure that ending up with 300,000 vacant properties (see the census, McWilliams etc.) counts as "pulling the nose up".
 
I don't really get this "drop the price by 10k now it's a bargain" thing...

If your house has doubled / triped / quadroupled in value, why is it so hard to drop the price by 10k or 50k or 100k?

If no one wants to even consider your house at its dropped by 10k bargain price, then that means your house is no where near worth that now.

If houses can double in price in 24 months, then they can easily half in price in 24 months...
 
Duplex said:
I don't think Dublin and London are comparable. Dublin and Bristol are a better comparison similar in size, Bristol isn't your typical 'post-industrial' city as can be found in most parts of the UK. Another comparable UK city might be Edinburgh.


http://www.rightmove.co.uk
Click to expand...


Agreed. However, if you search in the nicer areas of London (try postcodes SW6, N1, W4, SW11 from £500K upwards) you'll be amazed how much cheaper it is to buy there. Bristol, Edinburgh etc. are cheaper still.
 
Status
Not open for further replies.
Back
Top