I'll offer two theoriesWhat I want to know is where is all this 'Wall of maturing SSIA Mula' we were told about at the start of the year that was going to drive the donkey on ?.
What I want to know is where is all this 'Wall of maturing SSIA Mula' we were told about at the start of the year that was going to drive the donkey on ?.
heres more of it:
http://www.askaboutmoney.com/showthread.php?t=37917
anyone out there think its going to level off? A nyone think it wont PLUMMET?
It's not that I'm pessimistic about the market but if we get 50 basis points tomorrow I changing my name to Yogi !
Had a look on myhome and there doesn't seem to be any shortage of properties on the market in Castleknock. I thinks Phoenix's advice to drop the price is merited, wonder will it be heeded?
Where property bubbles have burst in other markets, it's always been the professional investor that saves the market, buying when they see value.
I think that this is a huge unpredictable wildcard that is more likely to panic and be less able to handle a loss.
My point was that the only thing preventing the market collapsing to zero will be professional investors who will buy when they get a decent yield.
Yes, you're right. It will of course reach a stage where readjusted yields make it economically viable to BTL once again, and should provide some kind of a floor.
Yes, you're right. It will of course reach a stage where readjusted yields make it economically viable to BTL once again, and should provide some kind of a floor.
It's possible that there may also be people on low to average wage who have been totally priced out the market currently. Some of these may be in a position to enter should prices drop although it's hard to verify how many would fall into this group, and how long they would be willing to watch the market drop for (since those drops work to their advantage).
Having said that, once long term tenants find prices have dropped far enough to render mortgages and rent on a par, this may provide a more "solid" floor.
Due to herd mentality, it's unlikely that private buyers will step in until professionals put a floor on the market. It's typical bubble activity, unfortunate lemmings pile in at the top and then fear finally keeps others out as they see the disaster unfold.
The Rocky Mountain News reports from Colorado. “Real estate foreclosures in the Denver area rocketed by 32.3 percent in the first nine months of the year, as condo overbuilding, risky loans and inflated appraisals drove the number of loan defaults to near record territory.”
“Through September, 14,205 foreclosures had been filed in the metro area, compared to 10,735 in the first three quarters of 2005. The record for foreclosures was set in 1988, when 17,122 were filed from Boulder to Douglas counties.”
“Economist Tucker Hart Adams said many of the foreclosures seem to be in the suburban condo market.”
“In one troubled condo project in southeast Denver, some one-bedroom units are being sold in foreclosure for as little as $18,000 to $20,000, while they sold for $110,000 to $120,000 at their peak, said broker Rob Murphy. Many owners walked away from their mortgages after being slapped with huge assessments.”
“‘The problem is it has a ripple effect,’ Murphy said ‘Appraisers are already under fire because a few bad apples were overinflating them. Now, appraisers can’t justify units down the street selling for $80,000 to $90,000, when they use this for a comparable.’”
9 out of 96 sell under the hammer this week. I suppose things are not too bad after all.