Reading this thread has been really interesting!
Mrs. Whathome and I have been active in the market since January. We currently own two properties (purchased in 1998 and 2001) and we were planning on selling both to trade up.
Given that we are selling and buying, we've had a good view of both sides of the market and we are definitely becoming more bearish every day. Our selling agent mentioned that despite the usual summer slowdown, prospective buyers appear to be far more cautious than usual.
As mentioned previously in this thread, increased inventory in certain areas is obvious - tons of investor type property (apartments and ex-rental houses) coming on even during the quiet summer season.
Our observations have been that some asking prices have quietly dropped over the recent past. This is not just a summer phenomenon as these houses were originally priced at levels consistent with similar properties in the same area. Furthermore, they're in what people would typically consider "secure" areas. Here are some examples of particular houses that I noticed:
- Blackrock : 4 Bed Detached reduced from €895,000 to €850,000
- Blackrock : 3 Bed Semi Dormer Bungalow reduced from €850,000 to €795,000
- Beaumont : 3 Bed Semi reduced from €590,000 to €550,000
- Raheny : 3 Bed Semi reduced from €760,000 to €719,000
- Raheny : 4 Bed Semi reduced from €850,000 to 820,000
- Rathmichael : 2 Bed reduced from €520,000 to €495,000
- Rathmichael : 2 Bed reduced from €460,000 to €435,000
I also noticed that some new €1M plus townhouses in Stillorgan that had previously sold out are back on the market - and this is not the release of a new phase.
There has been a real shift in momentum from the frenzy that was evident in March to a crawl as the two interest rate hikes kicked in. I know it's the summer season but I noticed a similar shift in sentiment when prices started to drop during 2001 when we bought, even prior to 9/11. September will be interesting - we know of several houses that have been pulled off the market to be "re-launched" in the autumn. Add next weeks expected interest rate hike, the overhang of unsold property from the previous season and the new supply will create some pressure.
I think the craziness that is the Irish property market is partly as a result of bank over-lending. When we originally spoke with our conservative bank manager in January, he was horrified that we were thinking of selling either of our properties in order to buy our next house. They were VERY keen for us to go interest only on both existing properties and use our equity along with a jumbo mortgage to fund our new home. I couldn’t go along with that as I like to sleep at night – well most nights!
What has really highlighted a change in sentiment to me is that when we told people in Jan/Feb that we were planning on selling to buy, they invariably replied that we were “Mad to sell anything”. The response has changed recently to a reluctant “Maybe you’re doing the right thing”. Only time will tell!
