Apologies if someone has already made this point, but if interest rates are going to rise even more before christmas, will potential buyers not be rushing to get into the market now while they will still qualify for higher mortgages than wait till next year thus causing a bit of a surge towards the end of the year?
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phoenix_n
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homeowner said:
Isnt the next rate increase in Sept. Just in time for the 'expected' season to start again.
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StoppedClock
Guest
homeowner said:
Fair point and agree it is likely, but my GOD what is the mentality of these people, do they think:
I must get a mortgage now as I am fully expecting a rate rise and I want to make sure that I borrow even more than the unbelieveablly irresposnible banks would be preapred to lend me once the rise actually kick in.
They bloody well deserve it!!
room305 said:
That is because US buyers generally lock rates for the total duration of their mortgage. Variable (adjustable) rate mortgages (ARM's) are a recent arrival to the US market. So people rush to lock in a low rate. Variable rates are dominant in Ireland so the "race against rates" is less likely to have as much of an effect here.
Raskolnikov
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If I owned a home, I would most definitely leave it up on daft permanently at 10-15% above it's market value. If some poor sap went along and bought it, I'd simply buy back into the market and pocket the profit. My point? There's nothing stopping anyone (especially in a hugely volatile S. Dublin market) from doing the same.
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Guest107
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Thats right behind the Cusack stand on the North Strand side. Its either in Marino or in North Strand not Drumcondra at all and the auctioneer knows that well .phoenix_n said:
Them housheens were €20k about 20 years ago .
A couple of things occur to me. How do you settle if your house is permanently on sale and people want to see it? House viewings are a nuisance.
Second thing occurs to me: is it a home you want or a get rich scheme? See, I don't have a lot of sympathy for people who get burned in the coming correction (because people will), but I have more compassion for those who actually want to set up a home for themselves than I do for those who are looking to get easy money.
Housing has an intrinsic purpose of providing shelter. Unfortunately, in Ireland of late, its primary purpose has been wealth generation. This in turn causes other problems which are going to be difficult to rectify. A lot of housing hasn't had shelter as its main remit, but short term profit. A lot of apartment blocks have gone up and to be honest I can't see all of them lasting out their 99 year leases.
Second thing occurs to me: is it a home you want or a get rich scheme? See, I don't have a lot of sympathy for people who get burned in the coming correction (because people will), but I have more compassion for those who actually want to set up a home for themselves than I do for those who are looking to get easy money.
Housing has an intrinsic purpose of providing shelter. Unfortunately, in Ireland of late, its primary purpose has been wealth generation. This in turn causes other problems which are going to be difficult to rectify. A lot of housing hasn't had shelter as its main remit, but short term profit. A lot of apartment blocks have gone up and to be honest I can't see all of them lasting out their 99 year leases.
Raskolnikov
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Unlikely, October and December are the current forecasts for rate hikes.phoenix_n said:
CelloPoint
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room305 said:Wow! What a bargain at only half a mil. I love the look of the landscaped garden. Yes, there is definitely a big correction ahead!
I'd just be surprised if the correction begin as price growth moderation. I would have expected a huge spike followed by a complete absence of buyers for several months. After which we will see a long brutal period of correction dragging out for many years.
Not ruling out the possibility of the spike having occured but I haven't noticed any real change of sentiment outside of this thread.
Have to disagree. There were several articles in the Business Post over the weekend.
[broken link removed]
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The warning signs are there. And besides, once the saps read it in the Sindo (indeed the Sunday Business Post), it'll be too late. The ladz are all sitting in their villas in Marbella and driving their Maybachs.
It may be the "silly-season", but this Irish housing market stuff is deadly serious and should not just be passed of as "silly-season doom-mongering". I'd say many a commuter will not be able to face another winter of 4 hours a day being wasted in a train carriage. They will think they're being clever by selling "before the imminent pop" - most of them will probably leave it too late as they'll wait until the last minute to get out of the gold mine, at which stage the elevator to the surface will be full.
Anyway, what to you think of this boyo, Noel Ahern, coming out with stuff like: "interest rate painless": [broken link removed]
And even greater clowns over in the ESB (despite their 77k average annual salaries) messing with the economy by supplying Intel not with electricity, but with power cuts:
[broken link removed]
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StoppedClock
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CelloPoint said:
"Ahern said he had yet to meet a constituent who had not been able to handle the rate increases"
That's cos there were't too many constituents in the FF tent in Galway!!
Raskolnikov
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My post was made in half-jest. I personally wouldn't want the hassle of having my house on sale permanently; but if someone came in with an offer of 10-15% above it's market value, I'd ate the hand off them!Calina said:
summerhill
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Any of the bank's passed on the latest interest rate increase to mortgage holders yet??? Any indication as to when it will happen?
Here's another price drop in Beaumont, D9. A friend of mine (not me - honestly) dropped out of bidding on an identical one of these at €610,000 in April, it has since returned to the market at 585k. These are commodity houses, there are about 400 of them in the estate.
Original price €570,000
Reduced price €550,000
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Original price €570,000
Reduced price €550,000
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CelloPoint
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summerhill said:
That's another good point. Can't remember where I saw it (boards.ie or here on AAM), but is there any evidence that the banks are not passing on the rises to their customers? If this is the case, the Irish banks are basically giving 2 fingers to the ECB, and it's like saying "to hell with the long-term future of the Irish economy, we're going to milk the tiger for every last drop of blood" and "we know better than the ECB". Interest rates for Ireland should have increased years ago and we should be welcoming rate increases!!! It's too late though, and the short-term gain associated with a price spike is more favourable (from a bank's perspective).
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phoenix_n
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whathome said:
Before i got to the end i knew which EA was selling it. Why THEY ALWAYS HAVE TO ADVERTISE WITH CAPITAL LETTERS is beyond me. So bloody annoying. (dont they know its akin to shouting)
(p.s. You gotta hand it to those who sold at the start of the year. They made a killing.)
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StoppedClock
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phoenix_n said:
I'm lovin' the sentiment but just before I start making smug phone calls and marching around the office yelling "I told you so" can you please confirm that we have peaked and that the crash is currently underway?
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