As they rushed to buy in a panic, why would they not do likewise when it comes to selling up? This exposes the myth of the carefully managed soft landing.
The market peaked in June and had been in decline since - but sellers have panicked. There's no telling them to wait."
The market peaked in June and had been in decline since - but sellers have panicked. There's no telling them to wait."
Extract from Irish Times today.
It's amusing , this rush to sell by the owners of second-hand houses. Given the market is overloaded, some sellers are having to drop their prices, to achieve a sale. Of course, they may not reveal the discount to their neighbours, thereby perpetuating the fiction that higher prices are being achieved.
The neighbours are not fooled, but are in denial, because they are in a panic. The result, as one estate put it to me this week, is a wholesale rush to dispose of second-hand houses, in spite of a glut on the market. It's hard, too, to have sympathy for the laggards who are making fools of themselves by rushing to sell when the market has peaked.
Now, it's probably too late to realise the massive profits of recent years. It was put to me graphically by one estate agent: "In the past three months, I sold three identical houses in the same street. The prices were - €1.5m, €1.4.m, €1.1m - in that declining order per month. The market peaked in June and had been in decline since - but sellers have panicked. There's no telling them to wait."
Extract from Irish Times today.
It's amusing , this rush to sell by the owners of second-hand houses. Given the market is overloaded, some sellers are having to drop their prices, to achieve a sale. Of course, they may not reveal the discount to their neighbours, thereby perpetuating the fiction that higher prices are being achieved.
The neighbours are not fooled, but are in denial, because they are in a panic. The result, as one estate put it to me this week, is a wholesale rush to dispose of second-hand houses, in spite of a glut on the market. It's hard, too, to have sympathy for the laggards who are making fools of themselves by rushing to sell when the market has peaked.
Now, it's probably too late to realise the massive profits of recent years. It was put to me graphically by one estate agent: "In the past three months, I sold three identical houses in the same street. The prices were - €1.5m, €1.4.m, €1.1m - in that declining order per month. The market peaked in June and had been in decline since - but sellers have panicked. There's no telling them to wait."
The market peaked in June and had been in decline since - but sellers have panicked. There's no telling them to wait."
The prices were - €1.5m, €1.4.m, €1.1m - in that declining order per month.
€1.5m to €1.1m, thats a drop of almost 40%
Post of the threadIn a speculative bubble, supply isn't so much the issue, over-demand is. As in demand for instruments of capital appreciation, not demand for homes.
If undersupply was the issue, then house price growth wouldn't be speculative by definition.... it'd be a genuine price rise due to lack of supply (think 1996-2001).
Even if we were perfectly supplied for genuine home occupation, demand for speculative instruments of capital appreciation warps the supply/demand curve. Remove that element of demand (i.e. lack of further cap. apprec.) and in theory you get a return to fundamental values.... not accounting for sentiment/herd mentality.
Incidentally, I think we are oversupplied. We'll see what shakes out of the tree once capital appreciation begins to disappear.
Extract from Irish Times today.
It's amusing , this rush to sell by the owners of second-hand houses. Given the market is overloaded, some sellers are having to drop their prices, to achieve a sale. Of course, they may not reveal the discount to their neighbours, thereby perpetuating the fiction that higher prices are being achieved.
The neighbours are not fooled, but are in denial, because they are in a panic. The result, as one estate put it to me this week, is a wholesale rush to dispose of second-hand houses, in spite of a glut on the market. It's hard, too, to have sympathy for the laggards who are making fools of themselves by rushing to sell when the market has peaked.
Now, it's probably too late to realise the massive profits of recent years. It was put to me graphically by one estate agent: "In the past three months, I sold three identical houses in the same street. The prices were - €1.5m, €1.4.m, €1.1m - in that declining order per month. The market peaked in June and had been in decline since - but sellers have panicked. There's no telling them to wait."
But not surprising given that rental yields on these places were 2% or less; the fundamentals didn't support the valuations. As a poster on this thread so aptly put it these properties were 'instruments of capital appreciation' and when prices stop going up they fail in that role.
Post of the thread
€1.5m to €1.1m, thats a drop of almost 40%
em.. just over 26%... still big though..
A lot of people were trying to make money while the party lasted - knowing that it couldn't last - but still thinking the bubble had enough momentum to carry them along.
The "I-could-be-Paddy-Last" fear lurking in the back of their minds now moves to the fore and the rush to the exit begins.
The problem now, of course, is that the exit has become very narrow !
It'd be a rise of almost 40% going the other way.... maybe Irish people have forgotten how to calculate percentage falls...!!!
(Sorry plaudit, just kidding!)
Link to that Irish Times Article this morning (subscription required):
[broken link removed]
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?