Current public sentiment towards the housing market?

Status
Not open for further replies.
It's really when you're active in the market that you get a clear indication of it's strength.

On Monday I'm going to accept an offer below asking. My asking price was set at the level achieved by the previous identical property sold by the same agent in April.

Any properties that we are interested in buying currently either have no offers or offers significantly below asking. Many of them have been on the market since before the summer quiet period. Some houses that we lost bidding wars on have returned to the market having been sale agreed, they are now back on at their original asking price.

As a seller, I'm feeling more vulnerable but as a buyer I'm feeling far more confident. This is a complete reversal to our position in March/April.
 
The salient point at the moment is that people are in property chains. Some houses in great locations (L/L/L) will sell if only people selling in not so great areas can sell. The distance between the next rung in the property ladder is widening, from the FTB markert and the trade-up market.
 
whathome said:
It's really when you're active in the market that you get a clear indication of it's strength.

On Monday I'm going to accept an offer below asking. My asking price was set at the level achieved by the previous identical property sold by the same agent in April.

Any properties that we are interested in buying currently either have no offers or offers significantly below asking. Many of them have been on the market since before the summer quiet period. Some houses that we lost bidding wars on have returned to the market having been sale agreed, they are now back on at their original asking price.

As a seller, I'm feeling more vulnerable but as a buyer I'm feeling far more confident. This is a complete reversal to our position in March/April.
Click to expand...

If I was you, I would hold out going sale agreed on your property (trade-up market, yes?) until Oct.
 
Sunday Business Post:

Investors could flee buy-to-let market
[broken link removed]

House-price inflation set for slowdown
[broken link removed]

Inflation worries have forced ECB to tighten the squeeze
[broken link removed]

Sunday Independent:
Home-owners seek quick fix for rate rises
http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1666616&issue_id=14467

Comment from Ulster Bank boss...
"It just can't continue on. I think rising interest rates will help that and there's also one hell of a lot of supply coming onto the market"
 
Hibernicatio said:
Would it be reasonable to assume that when the market crashes, or a period thereafter, whichever Government is in power would be under pressure to reduce re-entry costs such as stamp duty etc?
Click to expand...

The Government could even come under pressure to become an active market participant. If there was a flood of houses coming onto the market, people might expect the state to step in to buy properties as social housing. This could act as an effective floor to the market.

In any case, I doubt it would be in the Government´s interest to stand idly by and to watch the market collapse.
 
dontaskme said:
The Government could even come under pressure to become an active market participant. If there was a flood of houses coming onto the market, people might expect the state to step in to buy properties as social housing. This could act as an effective floor to the market.

In any case, I doubt it would be in the Government´s interest to stand idly by and to watch the market collapse.
Click to expand...

When would they get involved? After the market drops 10%. Why would they get involved then if the market had further to fall. I wouldn't want my taxes to be used to prop up a market which could fall further still, that makes no sense at all so it has a good chance of happening.....:eek:
 
Still going strong......

"Estate agents, unsurprisingly, continue to put a positive spin on property. Ronan O’Driscoll, a director of Hamilton Osborne King, is adamant that any trend to sell off buy-to-let properties is not widespread. “I honestly can’t think of a single example of an investor selling up. I just haven’t come across that at all. The rental market is exceptionally strong, with virtually no void periods. Investors are sitting on an income stream and have seen good growth along the way"

http://www.timesonline.co.uk/newspaper/0,,2770-2300403,00.html


This guy isn't reading the script.........

"A three-bedroom semi-detached in Cork will cost you €360,000 and give you a yield of €12,000. That is only 3%, and if your mortgage is 4.25%, you’re losing money. That doesn’t make sense."

http://www.timesonline.co.uk/newspaper/0,,2770-2300395,00.html
 
dontaskme said:
The Government could even come under pressure to become an active market participant. If there was a flood of houses coming onto the market, people might expect the state to step in to buy properties as social housing. This could act as an effective floor to the market.

In any case, I doubt it would be in the Government´s interest to stand idly by and to watch the market collapse.
Click to expand...

This is probably the underlying fantasy driving the Irish property bubble.....an illusion of a 'nanny state' combined with memories (?) of colonisation and rackrenters. People who have committed themselves to property ownership will unfortunately discover the hard way that in business the more potential gain the more risk involved. Investments can fall in value as well as rise. There is absolutely no reason to think "The State" will bail anyone out!!! As the previous poster points out this would be irresponsibly committing the taxes of some to protecting the irresponsibility of others. However I think your remark uncovers the irrational belief of many latter-day property 'moguls' (or even young couples 'buying instead of renting')..........that there is no risk!........that nothing can go wrong (or if it does Nanny State will bail them out). That is not a "market"! Housing is a "market".
 
I don't know why this surprises me anymore but I still meet well-educated people who don't know that interest rates are harmonized across the Eurozone or who sets them.... and these are people who have mortgages to pay.
 
Marie said:
There is absolutely no reason to think "The State" will bail anyone out!!! As the previous poster points out this would be irresponsibly committing the taxes of some to protecting the irresponsibility of others.
Click to expand...

However the only thing that will matter to the government will be "is it a vote getter?".

I must admit though that we are already making exploratory plans for different places to live and settle in Europe in a few years, any move by the Irish government to make me pay for other peoples mistakes would copper-fasten that move. I know i'm not alone in this too.
 
beattie said:
Still going strong......

"Estate agents, unsurprisingly, continue to put a positive spin on property. Ronan O’Driscoll, a director of Hamilton Osborne King, is adamant that any trend to sell off buy-to-let properties is not widespread. “I honestly can’t think of a single example of an investor selling up. I just haven’t come across that at all. The rental market is exceptionally strong, with virtually no void periods. Investors are sitting on an income stream and have seen good growth along the way"

http://www.timesonline.co.uk/newspaper/0,,2770-2300403,00.html


This guy isn't reading the script.........

"A three-bedroom semi-detached in Cork will cost you €360,000 and give you a yield of €12,000. That is only 3%, and if your mortgage is 4.25%, you’re losing money. That doesn’t make sense."

http://www.timesonline.co.uk/newspaper/0,,2770-2300395,00.html
Click to expand...
Wonder what he thinks of Dublin gross yields of 2% or less! He says he's gonna keep some as long term investments (ie:the pension) but does he not realise that in 20/30 years with the massive supply being built and likely to keep being built for those 20/30 years there will be a massive oversupply and selling or renting may be quite hard at a price he would expect,he's likely to have a lower priced asset and less rent,he should sell up and use all his capital more constructively and diversify his investments.
 
dontaskme said:
The Government could even come under pressure to become an active market participant. If there was a flood of houses coming onto the market, people might expect the state to step in to buy properties as social housing. This could act as an effective floor to the market.

In any case, I doubt it would be in the Government´s interest to stand idly by and to watch the market collapse.
Click to expand...

I doubt that even Bertie would countenance this.

1. The government have earmarked several large social housing development sites around the Greater Dublin Region. Some of these are at an advanced planning stage.

2. Not proceeding with these developments would be a blow to the building industry just as private sector demand demand wanes.

3. Many social sector tenants are already housed in private sector rental units, if the government bought distressed properties it would adversely effect an already shaky private rented sector.

4. To purchase ten thousand average housing units where social housing provision is at its lowest would cost the taxpayer €4 to 5 billion. Building a similar number on land owned by the state and at cost, might cost half this amount.

5. Buying scattered units across any region would add to management and maintenance costs, and no doubt nimby's would wish to voice their concerns about the impact of living next door to a social housing unit.
 
Duplex said:
I doubt that even Bertie would countenance this.
...
Click to expand...

I didn´t really put that much thought into ít as a serious suggestion. But if house prices really started to crash and burn before the next general election how many parties could make daft promises?

Last time round Fine Gael proposed gifting taxpayers´ money to people who got burned by eircom´s ipo and a lot less people were exposed to that than to the housing market.
 
Any one under any illusion about our economy and housing market after reading this.?
 
wolfie said:
Any one under any illusion about our economy and housing market after reading this.?
Click to expand...


It may sometimes be expedient for a man to heat the stove with his furniture. But if he does, he should know what the remoter effects will be. He should not delude himself by believing that he has discovered a wonderful new method of heating his premises.
Click to expand...

Indeed.

And...


In his Three Lectures on Commerce and one on Absenteeism (1835) Mountifort Longfield drew attention to the possibility that a change in the pattern of spending could bring about an unfavourable change in the structure of investment.

Longfield pointed out that if absentee landlords spent their rents on buying French dresses and lace for their lady friends instead of investing in their Irish farms this could alter the factorial terms of trade for Ireland. A little economic reasoning indicates that a loose monetary policy could have the same effect by artificially stimulating the demand for foreign consumption goods.
Click to expand...
 
wolfie said:
Any one under any illusion about our economy and housing market after reading this.?
Click to expand...

Excellent Article.

To repeat: The economic and financial situation in the United States is today far worse than in 2000, when the economy's slowdown began. What's worse, monetary and fiscal policy have no ammunition left.
Bubbles Bubbles Everywhere.
 
On the FTB rates hikes thread, Liteweight mentioned a block of apartments (100) in Sandymount that were developed and left vacant, maybe some being rented. I've noticed a block of about 30 apartments at the entrance to Woodlawn in Santry that have been vacant for well over a year, they were never sold or rented. Has anyone else noticed this?

I've also noticed when driving past blocks in Sandyford, Dundrum and Stepaside in the evenings that many of the individual apartments do not look like they're occupied. Maybe the new owners are waiting for Pia Bang to put the finishing touches to interior design.
 
whathome said:
On the FTB rates hikes thread, Liteweight mentioned a block of apartments (100) in Sandymount that were developed and left vacant, maybe some being rented. I've noticed a block of about 30 apartments at the entrance to Woodlawn in Santry that have been vacant for well over a year, they were never sold or rented. Has anyone else noticed this?

I've also noticed when driving past blocks in Sandyford, Dundrum and Stepaside in the evenings that many of the individual apartments do not look like they're occupied. Maybe the new owners are waiting for Pia Bang to put the finishing touches to interior design.
Click to expand...
Could be developers holding on to them to sell for more a year or two down line but would have taught that any developer would want to get as much return as quick as possible to invest in his next development, a developer would get more return on 5million euro through another development than in leaving that capital tied up in apartments. Could be larege property investors who buy multiple apartments in many developments and dont rent them all for whatever reasons. Hard to fathom whats going on ,i've heard many anecdotal reports of empty apartments around dublin especially in suburbs.
 
Status
Not open for further replies.
Back
Top